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A pension fund manager is considering three mutual funds. The first ia a stock fund The second is a long-term bond fund The third is

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A pension fund manager is considering three mutual funds. The first ia a stock fund The second is a long-term bond fund The third is a money market fund that provides a safe return of 5% The characterisitics of the risky funds are as follows: Use this data for problems #5 - n9 \begin{tabular}{|l} \hline 5.00% \\ \hline Stock Fund \\ \hline Bond Fund \\ \hline Correlation (rho) \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline money market return & \\ \hline Expected Return & Stdev \\ \hline 28.00% & 39.00% \\ \hline 20.00% & 26.00% \\ \hline 0.2000 & \\ \hline \end{tabular} What is the investment proportion in the optimal risky portfolio for the stock fund? (B) 4163 (C) 4361

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