Problem 12 Intro You have $5,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an expected return of 12% and a standard deviation of returns of 21%. T-bills have a return of 2%. Part 1 Attempt 1/10 for 10 pts. If you put 76% into the mutual fund, what is your expected rate of return for the complete portfolio? 0.096 Correct E(rc) = y E(rp) + (1-y) rf = 0.76 * 0.12 + 0.24 * 0.02 = 0.096 Part 2 - Attempt 1/10 for 10 pts. What is the standard deviation of returns if you put 76% into the mutual fund? 0.1596 Correct Oc = y Op = 0.76 * 0.21 = 0.1596 Part 3 Attempt 1/10 for 10 pts. Since you're risk-averse, you are only willing to tolerate a standard deviation of 10% on the complete portfolio. How much money should you put into T-bills (in $)? 2,619.047619 Correct 0.1 = 0c = y op y= 0.1 0.21 = 0.4762 Invest y * funds = 0.4762 * $5,000 = $2,381 in the mutual fund, and $2,619 in T- bills. Part 4 Attempt 1/10 for 10 pts. What's the Sharpe ratio of the complete portfolio with oc=10%? 3+ decimals