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What is the expected return and standard deviation

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Reference no: EM133275432

Assume that you are thinking of investing in a risky fund that has an expected rate of return of 15% and a standard deviation of 19%. The T-bill rate is 5%. You are thinking of investing 30% of your portfolio in the risky fund and 70% in T-Bills.

a. What is the expected return and standard deviation of your portfolio?

b. What is the Sharpe Ratio (S) of the risky fund and the overall portfolio?

c. Draw the CAL of your portfolio on an expected return/standard deviation diagram. Label your diagram including the client's portfolio and your fund on the diagram.

Reference no: EM133275432

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