You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest Php60,000 of her portfolio in your equity fund and Php40,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client's portfolio?

You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest Php60,000 of her portfolio in your equity fund and Php40,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client's portfolio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 5P

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