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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
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: Expected Return Standard Deviation Stock Fund () 25% 40% deg Bond Fund () 12% 22% The correlation between the fund returns is 0.20 What is the expected return and standard deviation of the optimal risky
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