A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government andfunds are:corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.2%. The probability distributions of the riskyExpected Return:Expected returnStandarddeviationStock fund (5)12%Bond fund (8)54The correlation between the fund returns is 0.0308.intermediate calculations. Round your answers to 2 decimal places.)What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not roundAnswer is complete but not entirely correct.11.8232.24Standard Deviation33%26%%

Variance Portfolio:The portfolio with the lowest variance is one that includes risky assets and in…

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and funds are: corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.2%. The probability distributions of the risky Stock fund (5) Bond fund (8) Expected Return 5% Standard Deviation 33% 26% The correlation between the fund returns is 0.0308. intermediate calculations. Round your answers to 2 decimal places.) What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round Answer is complete but not entirely correct.

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and funds are: corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.2%. The probability distributions of the risky Stock fund (5) Bond fund (8) Expected Return 5% Standard Deviation 33% 26% The correlation between the fund returns is 0.0308. intermediate calculations. Round your answers to 2 decimal places.) What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round Answer is complete but not entirely correct.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 4%. The characteristics of the risky funds are as follows: Expected Return Standard Deviation Stock fund (S) 19 % 34 % Bond fund (B) 10 18 The correlation between the fund returns is 0.11. What is the Sharpe ratio of the best feasible CAL?
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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: stock fund (5) Expected Return 16% 10% Bond fund (B) The correlation between the fund returns is 0.10. Standard Deviation 38% 29% Problem 6-11 (Algo) Suppose now that your portfollo must yield an expected return of 13% and be efficient, that is, on the best feasible CAL. Required: a. What is the standard deviation of your portfolio? (Do not round Intermediate calculations. Round your answer 2 decimal places.) Standard deviation % 1 ง b-1. What is the proportion Invested in the T-bill fund? (Do not round Intermediate calculations. Round your ans to 2 decimal places.) Proportion invested in the T-bill fund % b-2. What is the proportion Invested in each of the two risky funds? (Do not round Intermediate…
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 5%. The characteristics of the risky funds are as follows: Stock fund (5) Bond fund (8) Standard deviation Expected Return 20% 11 The correlation between the fund returns is 0.09. You require that your portfolio yield an expected return of 12%, and that it be efficient, that is, on the steepest feasible CAL. a. What is the standard deviation of your portfolio? (Round your answer to 2 decimal places.) Money market fund Stocks Bonds Standard Deviation 35% 15 % b. What is the proportion invested in the money market fund and each of the two risky funds? (Round your answers to 2 decimal places.) Proportion Invested I
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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 16% 7% Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.0385. Expected return Standard deviation Standard Deviation 45% 39% What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) % %
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 5.0%. The probability distributions of the risky funds are: Stock fund (S) Bond fund (B) Expected Return 11% 6% Expected Standard deviation The correlation between the fund returns is 0.0500. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Standard Deviation 40% 20% % %
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 Standard Deviation Stock fund (S) 16 % 32% Bond fund (B) 10 % 23% The correlation between the fund returns is 0.10. What is the Sharpe ratio of the best feasible CAL? Please tell me the Sharpe ratio. I know its annoying but i tried it 15 different times and none of my answers are coming out right. I asked 2 people on here and both were wrong apparently.
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: Standard Deviation Stock fund (S) Bond fund (B) 30% 15 The correlation between the fund returns is 0.10. You require that your portfolio yield an expected return of 14%, and that it be efficient, that is, on the steepest feasible CAL. Required: a. What is the standard deviation of your portfolio? b. What is the proportion invested in the money market fund and each of the two risky funds? Expected Return 20% 12 Complete this question by entering your answers in the tabs below. Required A Money market fund Stocks Bonds Required B What is the proportion invested in the money market fund and each of the two risky funds? Note: Round your answers to 2 decimal places. Proportion Invested % %

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