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Fund has an expected risk premium of 4% and an expected standard deviation of 10%. The rate on Treasury bills is 5%. An individual with $100,000 chooses to invest $50,000 of her portfolio in the equity fund and $50,000 in a T-bills.

A) What is the expected rate of return and standard deviation of return on the individual's portfolio?

B) What is the reward-to-variability ratio for the equity fund by itself?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92298889

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