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Problem 1 You manage an equity fund with an expected risk premium of 7% and a standard deviation of 20%. The rate on Treasury bills

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Problem 1 You manage an equity fund with an expected risk premium of 7% and a standard deviation of 20%. The rate on Treasury bills is 3%. Your client chooses to invest $60,000 of her portfolio in your equity fund and\$40,000 in a T-bill money market fund. 1. What is the expected return on your client's portfolio? 2. What is the standard deviation of return on your client's portfolio

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