Standard deviation of return on your clients portfolio

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Reference no: EM131348054

You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on 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 expected return and standard deviation of return on your client’s portfolio? (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Expected return %

Standard deviation %

Reference no: EM131348054

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