File Home Insert Draw Layout Review View Times New... 12 B I U Question 1: ab D A revision - Saved [ A 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 sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15% 32% Bond fund (B) 9 23 The correlation between the fund returns is .15. What is the Sharpe ratio of the best feasible CAL? (LO 6-3) Question 2 What must be the beta of a portfolio with E(rp) = 20%, if r= 5% and E() = 15%? (LO 7-2) Question 3 assume the risk-free rate is 8% and the expected rate of return on the market is 18%. A stock has an expected return of 6%. What is its beta? (LO 7-2) BRIGHT PEASAH Sensitivity Dex || O < W M > > 49 96% QFri, March 27 8:20 AM