q44

1a. Assume that you manage an equity fund with an expected rate of return of 17%, a variance of 11.89% and a standard deviation of 34%. The T-bill rate is 2%. Your client chooses to invest 67% of her portfolio in your fund and 33% in T-bills. What is the expected return and standard deviation of your clients portfolio?

1b. Identify and explain the 4 most common and important relative valuation ratios that can be used for the portfolio management security screening process.