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A pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund and

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A pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund and the third is a money market fund. The money market fund yields a risk-free return of 6%. The inputs for the risky funds are given in the following table. The correlation coefficient between the stock and the bond funds is 0.25 . a. What is the expected return and the variance for a portfolio that invests 63% in the stock fund and 37% in the bond fund? (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.) b. What is the expected return and the variance for a portfollo that invests 63% in the stock fund and 37% in the money market fund? (Hint Note that the correlation coofficient between the portfolio and the money market find is zera) (Round intermediate calculations. to at least 4 decimal places and final answers to 2 decimal places.)

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