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What is the expected rate of return on your client portfolio

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Reference no: EM132813370

Question - Suppose that you are managing a portfolio with a standard deviation of 39% and an expected return of 16%. The Treasury bill rate is 5%. A client wants to invest 20% of his investment budget in a T-bill money market fund and 80% in your fund.

Required -

1. What is the expected rate of return on your client's complete portfolio?

2. What is the standard deviation for your client's complete portfolio?

3. What is the reward-to-volatility (Sharpe) ratio of your client's complete portfolio?

4. What is the Sharpe ratio of your portfolio?

Reference no: EM132813370

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