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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 government and corporate bond fund,
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 rate of 8%. The probability distribution of the risky funds is as follows Stock fund (5) Bond fund (B) Expected Return 20% 12 Standard Deviation 30% 15 The correlation between the fund returns is.10. 7. What is the proportion invested in the T-bill fund and each of the two risky funds
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