Reward-to-volatility ratio of risky and client portfolio

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Reference no: EM131977604

Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 29%. The T-bill rate is 8%. Your client chooses to invest 65% of a portfolio in your fund and 35% in a T-bill money market fund.

What is the reward-to-volatility ratio (S) of your risky portfolio and your client’s portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Your reward-to-volatility ratio

Client's reward-to-volatility ratio

Reference no: EM131977604

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