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 13% and a standard deviation of returns of 20%. T-bills have a return of 4%.

1.If you put 69% into the mutual fund, what is your expected return?

2. What is the standard deviation of returns?

3.

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 $)?

4. What's the Sharpe ratio of the complete portfolio with _c=10%?

5. If you wanted to achieve an expected return of 6% for the complete portfolio instead, how much money would you have to invest in the mutual fund (in $)?