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You manage an equity fund with an expected risk premium of 10.6% and a standard deviation of 20%. The rate on Treasury bills is 6%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $50,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund? (Round your answer to 4 decimal places.)

Reward-to-volatility ratio

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91767937

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