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You manage an equity fund with an expected risk premium of 10.8% and a standard deviation of 22%. The rate on Treasury bills is 3%.
You manage an equity fund with an expected risk premium of 10.8% and a standard deviation of 22%. The rate on Treasury bills is 3%. Your client chooses to invest $75,000 of her portfolio in your equity fund and $25,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your clients portfolio? (Round your answers to 2 decimal places.) Expected return % Standard deviation % ReferenceseBook & Resources
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