Question
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is
You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills 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 expected return and standard deviation of return on your clients portfolio? (Do not round your intermediate calculations. Round your answer to 1 decimal place. Omit $ sign in your response.) Expected return of the clients portfolio ? Standard deviation of clients overall portfolio ?
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