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Question:

You manage an equity fund with an expected risk premium of 11.2% and a standard deviation of 26%. The rate on Treasury bills is 4.2%. Your client chooses to invest $70,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund.

Required:

What is the reward-to-volatility ratio for the equity fund?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162003

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