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Please bold answers in explanation A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term
Please bold answers in explanation
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: Expected Return 20% 12 Standard Deviation 30% 15 Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.10. Tabulate the investment opportunity set of the two risky funds. (Round your answers to 2 decimal places.) Expected Return Standard Deviation Proportion in Stock Fund 0.00 % 20.00 Proportion in Bond Fund 100.00 % 80.00 % 40.00 60.00 40.00 60.00 80.00 100.00 20.00 0.00Step by Step Solution
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