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Problem 12 Intro You have $7,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an
Problem 12 Intro You have $7,000 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 24%. T-bills have a return of 2%. Part 1 Attempt 1/10 for 10 pts. If you put 60% into the mutual fund, what is your expected rate of return for the complete portfolio? 3+ decimals Submit Part 2 Attempt 1/10 for 10 pts. What is the standard deviation of returns if you put 60% into the mutual fund? 3+ decimals Submit Part 3 - Attempt 1/10 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 $)? 0+ decimals Submit Part 4 | Attempt 1/10 for 10 pts. What's the Sharpe ratio of the complete portfolio with 0=10%? 3+ decimals Submit Part 5 Attempt 1/10 for 10 pts. If you wanted to achieve an expected return of 6% for the complete portfolio instead, how much money would you have to invest in the mutual fund (in $)? 0+ decimals Submit
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