Standard deviation of return on your client portfolio

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Reference no: EM131995008

You manage an equity fund with an expected risk premium of 12.4% and a standard deviation of 38%. The rate on Treasury bills is 5.4%. Your client chooses to invest $120,000 of her portfolio in your equity fund and $80,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)

Expected return ____ %

Standard deviation ____ %

Reference no: EM131995008

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