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Business, 29.06.2021 07:00 rodfam13716

GUDR 3-Sais Questions page 3
Question 1
• An all stock fund(x) has average retum of 4% and an all bond fund (y) has an
average return of 1% The variance of return from the stock fund is 10% and the
variance of return from the bond fund is 6%. The covariance of stock and bond
funds is -1. If you create a mixed fund r= 25x+.75y
A) Compute the average return of the mixed fund
B) Compute the and variance of the mixed fund.

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Answers: 1

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GUDR 3-Sais Questions page 3
Question 1
• An all stock fund(x) has average retum of 4...

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