A portfolio manager manages a fund with an expected rate of return of 16% and a standard deviation of 30%. The T-bill rate is 6%. If a client wanted to invest 80% of his portfolio in the fund and 20% in T-bills, what would the expected value of the portfolio be?

Question

A portfolio manager manages a fund with an expected rate of return of 16% and a standard deviation of 30%.  The T-bill rate is 6%.  If a client wanted to invest 80% of his portfolio in the fund and 20% in T-bills, what would the expected value of the portfolio be?

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The Answer of A portfolio manager manages a fund with an expected rate of return of 16% and a standard deviation of 30%.  The T-bill rate is 6%.  If a client wanted to invest 80% of his portfolio in the fund and 20% in T-bills, what would the expected value of the portfolio be?

A Portfolio Manager Manages a Fund with an Expected Rate