Assume that you manage a risky portfolio with an expected rateof return of 14% and a standard deviation of 38%. The T-bill rateis 5%. Your client chooses to invest 85% of a portfolio in yourfund and 15% in a T-bill money market fund.
a. What is the expected return and standarddeviation of your client's portfolio? (Round your answersto 2 decimal places.)
What is the reward-to-volatility ratio (S) of your riskyportfolio and your client's overall portfolio? (Round your answersto 4 decimal places.)
