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You manage a fund with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate (risk-free rate) is 8%.
You manage a fund with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate (risk-free rate) is 8%. Q4: Your client chooses to invest 70% of a portfolio in your fund and 30% in risk-free assets. What is the expected value and standard deviation of the rate of return on his portfolio? What is the Sharpe ratio of your risky portfolio? your client's? Q5: Suppose that your risky portfolio includes the following investments in the given proportions: Stock A: 25\%; Stock B: 32\%; Stock C: 43\%. What are the investment proportions of your client's overall portfolio, including the position in T-bills
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