Suppose that the borrowing rate that your client faces is 11%. Assume that the S&P 500 index has an expected return of 15% and standard deviation of 21%. Also assume that the risk-free rate is rf = 3%. Your fund manages a risky portfolio, with the following details: E(rp) = 12%, sp = 15%.

What is the largest percentage fee that a client who currently is lending (y < 1) will be willing to pay to invest in your fund? What about a client who is borrowing (y > 1)?

(Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

y < 1 %
y > 1 %