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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the

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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Expected Return Standard Deviation Stock fund (S) 20% 30% 12 15 Bond fund (B) The correlation between the fund returns is 0.10. Tabulate the investment opportunity set of the two risky funds. (Round your answers to 2 decimal places.) Proportion Proportion In Stock Fund in Bond Fund Expected Return Standard Deviation 0.00 % 100.00 % % 20.00 80.00 40.00 60.00 60.00 40.00 80.00 20.00 100.00 0.00

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