What is the expected return and standard deviation of


You manage an equity fund with an expected risk premium of 12% and a standard deviation of 34%. The rate on Treasury bills is 6.4%. Your client chooses to invest $80,000 of her portfolio in your equity fund and $120,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio?

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Financial Management: What is the expected return and standard deviation of
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