Vijay Suppose that the borrowing rate that your client faces is 6%. Assume that the equity market index has an expected return of 11% andstandard deviation of 29%. Also assume that the risk-free rate is r =3%. Your fund manages a risky portfolio, with the followingdetails: E (rp)=8%, p = 20%, rf=2%.What is the largest percentage fee that a client who currently is lending (y< 1) will be willing to pay to invest in your fund? What about aclient who is borrowing (y> 1)?Note: Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2decimal place.y<1y>1%%

When the investor prefers to take small or lower risky investment rather than highly risky…

Suppose that the borrowing rate that your client faces is 6%. Assume that the equity market index has an expected return of 11% and standard deviation of 29%. Also assume that the risk-free rate is r = 3%. Your fund manages a risky portfolio, with the following details: E(r) =8%, p = 20%, rf=2%. What is the largest percentage fee that a client who currently is lending (y<1) will be willing to pay to invest in your fund? What about a client who is borrowing (y> 1)? Note: Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal place. y<1 % y> 1 %