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A pension fund is invested in three index funds. 40% in an S&P 500 index fund with an expected return of 6% and an expected
A pension fund is invested in three index funds. 40% in an S&P 500 index fund with an expected return of 6% and an expected standard deviation of 16%, 10% in a rest of the world index fund with an expected return of 6% and an expected standard deviation of 17%, and 50% in a US Bond index fund with an expected return of 4% and an expected standard deviation of 8%.
What is the total fund's expected return?
5.5% | ||
Not enough information to calculate | ||
4.5% | ||
5% |
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