You manage an equity fund with an expected risk premium of 14% and a standard deviation of 54%. The rate on Treasury bills is 6.8%. Your client chooses to invest $120,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund.

(1) What is the expected return and standard deviation of return on your client's portfolio?

(2) What is the reward-to-volatility ratio for the equity fund?

(3) What is the risk-aversion index of your client?