Expected return and standard deviation


Problem:

You manage an equity fund with an expected risk premium of 11.4% and a standard deviation of 28%. The rate on Treasury bills is 5.2%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund.

Required:

Question: What is the expected return and standard deviation of return on your client's portfolio?

Note: Please provide full description.

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Finance Basics: Expected return and standard deviation
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