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7 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

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7 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 43%. The probability distributions of the rise funds are 10 points Expected Return Stock fund (S) Bond fund Standard Deviation 345 134 Book () 65 27 The correlation between the fund returns is 0630 P References Suppose now that your portfolio must yield on expected return of 11% and be efficient, that is on the best feasible CAL a. What is the standard deviation of your portfolio? (Do not round Intermediate calculations, Round your answer to 2 decimal places) Standard deviation * b-1. What is the proportion invested in the T-bill fund? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Proportion invested in the T-billund 10 7 a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Standard deviation 10 points eBook b-1. What is the proportion invested in the T bill fund? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Print Proportion invested in the Tbil hund -2. What is the proportion invested in each of the two taky funds (Do not found intermediate calculations. Round your answers to 2 decimal places) Proportion Invested Stocks Bonds

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