You are managing a fund with an expected rate of return of 15% and a standard deviation of 27%. The T-bill rate is 3%. Your client chooses to invest 60% of his portfolio in your fund and the rest in a T-bill money market fund. What is the expected return of your client's portfolio? Enter your answer as a decimal number, rounded to three decimal places.

You are managing a fund with an expected rate of return of 15% and a standard deviation of 27%. The T-bill rate is 3%. Your client chooses to invest 60% of his portfolio in your fund and the rest in a T-bill money market fund. What is the expected return of your client's portfolio? Enter your answer as a decimal number, rounded to three decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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