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You manage an equity fund with an expected risk premium of 11.2% and an expected standard deviation of 16. The rate on Treasury bills is 5.

You manage an equity fund with an expected risk premium of 11.2% and an expected standard deviation of 16.1%. The rate on Treasury bills is 5.5%. Your client chooses to invest $68,400 of her portfolio in your equity fund and $45,600 in a T-bill money market fund.

Required:

What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Expected return of client’s overall portfolio %
Standard deviation of client’s overall portfolio %
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Finance-8368416.doc

You manage an equity fund with an expected risk premium of 11.2% and an expected standard deviation of 16.1%. The rate on Treasury bills is 5.5%. Your client chooses to invest $68,400 of her...

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