Required: You manage an equity fund with an expected risk premium of 10.6% and a standard deviation of 20%. The rate on Treasury bills is 6%. Your client chooses to invest $50,000 of her portfolio i...
a) Calculate the expected return of the equity fund
b) Assess the risk-adjusted return of the equity fund
c) Compare the equity fund's performance to Treasury bills
d) Recommend investment strategies based on the client's risk tolerance
