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Problem 22 Intro You have $9,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an
Problem 22 Intro You have $9,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an expected return of 10% and a standard deviation of returns of 21%. T-bills have a return of 1%. Part 3 empez 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 $)? 4714.2857 0.1 = Oc = y op oc #Y 0.1 0.21 = 0.4762 op Invest y* funds = 0.4762 * 9,000 = $4,286 in the mutual fund, and $4,714 in T- bills. Part 4 - Attempt 6/10 for 10 pts. What's the Sharpe ratio of the complete portfolio with Oc=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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