Your client wonders whether to shift his assets from your fund into an index fund with an expected return of

$13\%$ and a standard deviation of $25\%.$

Find the maximum fee you could charge $($as a percentage of assets, deducted at the end of the year$)$ that would

still leave your client at least as well off investing in your fund as in the passive one, by choosing proportions

that give the two overall client portfolios the same risk level.