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Intro You have $5,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an expected return
Intro You have $5,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an expected return of 9% and a standard deviation of returns of 15%. T-bills have a return of 1%. Attempt 1/3 for 10 pts. Part 1 If you put 78% into the mutual fund, what is your expected rate of return for the complete portfolio? Part 2 Attempt 1/3 for 10 pts. What is the standard deviation of returns if you put 78% into the mutual fund? Part 3 Attempt 1/3 for 10 pts. Since you're risk-averse, you are only willing to tolerate a standard deviation of 10% on the complete portfolio. How much money should you put into T-bills (in $)
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