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You manage an equity fund with an expected risk premium of 12% and a standard deviation of 34%. The rate on Treasury bills is 6.4%.
You manage an equity fund with an expected risk premium of 12% and a standard deviation of 34%. The rate on Treasury bills is 6.4%. Your client chooses to invest $80,000 of her portfolio in your equity fund and $120,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.)
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