Please answer fast i give you upvote. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money market fund that yields a rate of 9%. The probability distribution of the risky fundsis as follows:Stock fund (S)Bond fund (B)ExpectedReturn19%12StandardDeviation32%15The correlation between the fund returns is 0.11.Portfolio invested in the stockPortfolio invested in the bondExpected returnStandard deviationSolve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio.(Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

Expected return of stock fund= 19%Expected return of bond fund= 12%Standard deviation of stock fund=…

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 rate of 9%. The probability distribution of the risky funds s as follows: Stock fund (S) Bond fund (B) Expected Return 19% 12 Standard Deviation Dortfolio in ated in the pink 32% 15 The correlation between the fund returns is 0.11. Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

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 rate of 9%. The probability distribution of the risky funds s as follows: Stock fund (S) Bond fund (B) Expected Return 19% 12 Standard Deviation Dortfolio in ated in the pink 32% 15 The correlation between the fund returns is 0.11. Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 5P

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