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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

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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 7%. The characteristics of the risky fund are as follows: The correlation between the fund retums is 0.20 . What is the expected retum and standard deviation of the optimal risky portfolio

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