Standard deviation of rate of return on client portfolio

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As an investor, suppose you saw that the price of a share stock was $20 , the exercise price of an option to buy the stock was $10 , and the price of the option was $5 , what will you do?

As an investment consultant of a firm,suppose you manage risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-Bill rate is 7% .One of you r clients chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund . What is the expected value and standard deviation of the rate of return on your client's portfolio?

Reference no: EM131944984

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