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Required: You manage an equity fund with an expected risk premium of 1 4 % and a standard deviation of 5 4 % . The

Required:
You manage an equity fund with an expected risk premium of 14% and a standard deviation of 54%. The rate on Treasury bills is 6.8%. Your client chooses to invest $120,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.)
Reward-to-volatility Ratio
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