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Problem 5-19 You manage an equity fund with an...

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Problem 5-19 You manage an equity fund with an expected risk premium of 10.9% and an expected standard deviation of 15.8%. The rate on Treasury bills is 7.5%. Your client chooses to invest $81,200 of her portfolio in your equity fund and $34,800 in a T-bill money market fund. Required: What is the reward-to-volatility ratio for the equity fund? (Round your answer to 2 decimal places.) Reward to variability ratio ?

 

Paper#8911 | Written in 18-Jul-2015

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