Business, 06.03.2020 15:55 samtrevino22

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.6%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 16 % 36 % Bond fund (B) 7 % 30 % The correlation between the fund returns is .0800. Suppose now that your portfolio must yield an expected return of 14% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio

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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...