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You manage an equity fund with an expected return of 16% and a standard deviation of 14%. The T-bill rate is 6%. Your client chooses
You manage an equity fund with an expected return of 16% and a standard deviation of 14%. The T-bill rate is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the Sharpe ratio of the client's portfolio? (Answer should be in the form X.XXXX) (Chapter 5)
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