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5. You are analyzing an investment portfollo to add to your pension fund. The manager you are looking at claims to be a balanced, Stock/Bond

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5. You are analyzing an investment portfollo to add to your pension fund. The manager you are looking at claims to be a balanced, Stock/Bond manager. To test this, you run a regression of the manager's performance against a stock index and a bond index, and the following is the result: rp=0.01rcest+0.67rstoct+0.32roval Based on this equation, about how much weight does the manager have in stocks and bonds? Alwo, if the expected retum on cash, stocks, and tionds is 2%,9%, and 4% respectively, what is the expecied return of the portfolio? Lastly. If the benchmark is a 60/40 Stockebond mix. How much does th port/olio out/underperform the benchmark? 5. You are analyzing an investment portfollo to add to your pension fund. The manager you are looking at claims to be a balanced, Stock/Bond manager. To test this, you run a regression of the manager's performance against a stock index and a bond index, and the following is the result: rp=0.01rcest+0.67rstoct+0.32roval Based on this equation, about how much weight does the manager have in stocks and bonds? Alwo, if the expected retum on cash, stocks, and tionds is 2%,9%, and 4% respectively, what is the expecied return of the portfolio? Lastly. If the benchmark is a 60/40 Stockebond mix. How much does th port/olio out/underperform the benchmark

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