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Question 10 Suppose that the borrowing rate that your client faces is 10%. Assume that the equity market index has an expected return of 14%

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Question 10 Suppose that the borrowing rate that your client faces is 10%. Assume that the equity market index has an expected return of 14% and standard deviation of 25%. Also assume that the risk-free rate is rf = 6%. Your fund manages a risky portfolio, with the following details: E(r) = 15%, 0, - 18%. 5 pts What is the largest percentage fee that a client who currently is lending (y1) will be willing to pay to invest in your fund? What about a client who is borrowing (y > 1)? ye1 Y-1 Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Do not enter percent signs (no %)

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