Problem 2: 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: 0 Expected Return Standard Deviation Stock fund (S) Bond fund (B) 15% 9% WA = The correlation between the fund returns is 0.15. 32% 23% What is the Sharpe ratio of the minimum variance portfolio ? (Do not round intermediate calculations. Round your answer to 4 decimal places.) (You are asked to use the formula to calculate the minimum-variance portfolio. -AOBPAB o+03-20A0BPAB Firstly, calculate the weight of stock fund and bond fund. Then calculate the portfolio expected return and standard deviation and then get the Sharpe ratio.)

Please solve this question arithmetically.

Problem 2: 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: The correlation between the fund returns is 0.15 . What is the Sharpe ratio of the minimum variance portfolio? (Do not round intermediate calculations. Round your answer to 4 decimal places.) (You are asked to use the formula to calculate the minimum-variance portfolio. wA=A2+B22ABABB2ABAB Firstly, calculate the weight of stock fund and bond fund. Then calculate the portfolio expected return and standard deviation and then get the Sharpe ratio.)