You manage equity fund with an expected risk premium of 14% and a standard deviation of 12%. The rate on T-bill is 3%. Your client chooses to invest $70,000 her portfolio in your equity fund and $30,000 in T-bill money market fund

What are the expected return and standard deviation of return on your client's portfolio?

	12.80% and 8.40%
	16.00% and 3.60%
	13.60% and 8.20%
	15.40% and 12.25%

What is the reward-to-volatility ratio (Sharpe Ratio) for this equity fund?

	1.8211
	1.7710
	1.1667
	1.8571