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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,

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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, 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 Expected Return 17% 13 Standard Deviation Stock fund (5) Bond fund (8) 18 The correlation between the fund returns is 012 3-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds. (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Portfolio invested in the stock Portfolio invested in the bond --2. What is the expected value and standard deviation of its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Rate of Return Expected return Standard deviation Problem 7-7 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: Expected Return 221 14 Standard Deviation Stock fund (5) Bond fund (8) 29% 12 The correlation between the fund returns is 0.12 Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Portfolio irwested in the stock Portfolio invested in the bond Expected return Standard deviation Problem 7-8 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 ylelds a rote of 7%. The probability distribution of the risky funds is as follows Stock fund (S) Bond fund (0) Expected Return 23% Standard Deviation 2013 12 The correlation between the fund returns is 0.12 What is the Sharpe ratio of the best feasible CAL? (Do not round Intermedinte calculations. Enter your answers as decimals rounded to 4 places.) Sharpe ratio

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