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You Manage an equity fund, with an expected rate of return of 12% and a standard deviation of 14%. The rate on the treasury bills
You Manage an equity fund, with an expected rate of return of 12% and a standard deviation of 14%. The rate on the treasury bills is 3%. Your client chooses to invest 50,000 of her portfolio in your equity fund and 30,000 in a t-bill money market fund. What are the expected return and standard deviation of your client's portfolio? What is the shape ratio(reward to volatility) for the equity fund?
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