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Problem 5-18 You manage an equity fund with an expected risk premium of 13% and a...

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Finance

Problem 5-18 You manage an equity fund with an expected riskpremium of 13% and a standard deviation of 44%. The rate onTreasury bills is 6.6%. Your client chooses to invest $90,000 ofher portfolio in your equity fund and $60,000 in a T-bill moneymarket fund. What is the expected return and standard deviation ofreturn on your client’s portfolio? (Round your answers to 2 decimalplaces.) Expected return % Standard deviation %

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Calculating expected return of ClientsportfolioSince T bill is a risk free asset hence Return on T bill moneymarket fund Rt Risk free rate 66Equity fund risk premium Return on equity fund risk freerate13 Return on equity fund 66Return on    See Answer
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