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You manage an equity fund with an expected risk premium of 12.2% and a standard deviation of 36%. The rate on Treasury bills is 4.4%.
You manage an equity fund with an expected risk premium of 12.2% and a standard deviation of 36%. The rate on Treasury bills is 4.4%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $110,000 in a T-bill money market fund. What is the reward-to-volatility ratio for theequity fund?(Round your answer to 4 decimal places.) |
Reward-to-volatility ratio |
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