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Reward to volatility ratio for the equity fund

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Reference no: EM133122762

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate of Treasury bills 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 reward- to volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places)

Reference no: EM133122762

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