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Required montation [The following information applies to the questions displayed below] A pension fund manager is considering three mutual funds. The first is a stock

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Required montation [The following information applies to the questions displayed below] 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: Expected Return 15% 9% Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.15. Standard Deviation 32% 23%

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