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go LG Paste BTU ab X, * ADA E a Styles **** ALPHA , au-, * etiam Styles Pane A. 0.03 B. 0.08 C. 0.20 D. 0.37 The following information addresses questions (23)-(27): You currently own shares in Buckeye Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization fund managed by Wolverine Investment Group (WIG). Your broker says that this fund will provide significant diversification benefits for your existing holdings. She gives you the following statistics based on the performance of the two funds over the last year. (15 points) Portfolio E(Return) Std. Dev. Buckeye Mutual Fund 20% 14% Wolverine Investment Grp. 12% IN 223) Assume you can earn an average annual yield of 67 on a risk-free security. Which of cse funds would be the optimal fund to combine with the risk-free security? A Buckeye B. Wolverine C. Neither Buckeye nor Wolverine D. Both are equally good E. There is not enough information to answer this question 2089 words English (United States) 11 Focus E- om Home Homew A utoSave OFF B U S . INVESTMENTS_TEST_Spring2020_EVENING VERSION Insert Draw Design Layout References Mailings Review View Times New... 12 AA AA E 21 A BIUX , X A A E E 1 Styles Styles cgo Pane pogle 24). What is the share ratio for Wolverine? A. 0.12 B. 0.24 C. 0.36 D. 0.51 25). What is the shape ratio for Buckeye? A. 0.57 B. 0.86 C. 1.03 D.2.15 26) Using the fund you selected in (23), how much portfolio weights in the fund and the risk-free security would be required to earn a target return of 22%? A. The fund weight is 98% and the risk-free asset weight is 2% B. The fund weight is 50% and the risk-free asset weight is 50% C. The fund weight is 102% and the risk-free asset weight is -2% D. The fund weight is 117% and the risk-free asset weight is -17% 17 and the stree asset weight is -17% 27) Assume the correlation between the Buckeye and Wolverine funds is 0.1. What would have been your average return and standard deviation over the last year if you placed 60% of your investment in Buckeye and 40% of your investment in Wolverine? A. Combined portfolio retum-16,8% and combined portfolio standard deviation - 9.9% B. Combined portfolio return-19.3% and combined portfolio standard deviation-4.1% C. Combined portfolio return"28.9% and combined portfolio Standard deviation - 17.5% D. Combined portfolio retum-32.7% and combined portfolio standard deviation - 24.2%