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You manage an equity fund with an expected risk premium of 14% and a standard deviation of 17%. The rate on Treasury bills is 8%.
You manage an equity fund with an expected risk premium of 14% and a standard deviation of 17%. The rate on Treasury bills is 8%. Your client chooses to invest $70,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client's portfolio?
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