You are an analyst for a hedge fund manager. Your boss needs you to prepare a portfolio report for one of the hedge fund’s clients. You take a look at the client’s investment portfolio and see that they have 33.5% of their money in an emerging markets equity fund and 66.5% of their money in a BBB corporate bond fund. Your hedge fund manager predicts that the equity fund will yield a return of 18% and the bond fund will return 8% over the next year. Further, the equity fund is expected to have a standard deviation of 25% and the bond fund is expected to be 9%. Assume that the T-bill rate is 1%, and the equity fund and bond fund returns have a correlation coefficient of .16. To complete the report you need to calculate:

A) The expected return of the portfolio?

B) The standard deviation of the portfolio?

C) The Sharpe ratio of the portfolio?

PLEASE SHOW ALL WORK