An investor purchases shares of the following corporation at the beginning of each year period. Dividends are paid at the end 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 $8\%.$ The characteristics of the risky funds are as follows:

The correlation between the fund returns is $0\mathrm{.}10.$

You require that your portfolio yield an expected return of $14\%,$ and that it be efficient, that is$,$ on the steepest feasible CAL:

Required:

a$.$ What is the standard deviation of your portfolio?

b$.$ What is the proportion invested in the money market fund and each of the two risky funds?

Complete this question by entering your answers in the tabs below.

What is the proportion invested in the money market fund and each of the two risky funds?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.of eachA 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 $8\%.$ The characteristics of the risky funds are as follows:

The correlation between the fund returns is $0\mathrm{.}12.$

Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio.

Note: Do not round intermediate calculations. Enter your answers as decimals rounded to $4$ places. You can find the answer using

the formula or using Excel Solver. If you are using Excel Solver make sure to multiply the objective function by a large number

such as $1,000,000$ to ensure $4-$decimals precision in Excel.

year. Assume dividends are withdrawn.

Required:

Using the information in the tables above, please calculate the cash flows and the dollar$-$weighted rate of return for the above

transactions.

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When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.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 $8\%.$ The characteristics of the risky funds are as follows:

The correlation between the fund returns is $0\mathrm{.}10.$

You require that your portfolio yield an expected return of $14\%,$ and that it be efficient, that is$,$ on the steepest feasible CAL:

Required:

a$.$ What is the standard deviation of your portfolio?

b$.$ What is the proportion invested in the money market fund and each of the two risky funds?

Complete this question by entering your answers in the tabs below.

What is the proportion invested in the money market fund and each of the two risky funds?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.