1. Assume you manage a risky portfolio with an expected rate of return of 17%, and a standard deviation of 27%. The T-Bill rate is 7%. What is the Sharpe ratio of your portfolio?
2. You manage an equity fund with an expected return of 16% and a standard deviation of 14%. The T-bill rate is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the Sharpe ratio of the client's portfolio? (Answer should be in the form X.XXXX)