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You manage an equity fund with an expected return of 16% and an expected standard deviation of 14%. The rate on Treasury bills is 6%.

You manage an equity fund with an expected return of 16% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of his/her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio on your client's portfolio?

A) .41

B) .15

C) .71

D) .14

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