Manage mutual fund with an expected rate of return

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Assume that you manage a mutual fund with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. An investor wants to invest in your fund and T-bills such that the standard deviation of the investor’s total portfolio is 30%. How much is invested in your mutual fund and what is the expected return?

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Reference no: EM131300824

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