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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 4.% The probability distributions of the risky funds are Expected Rturn Standan Devistlon Stock fund (S) Bond fund () 378 The corelation between the fund returns is 0.0630 What is the Sharpe ratio of the best feasible CAL? (Do not round intermediete calculations. Round your answer to 4 decimal places.) Sharpe ratio

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 4.% The probability distributions of the risky funds are Expected Rturn Standan Devistlon Stock fund (S) Bond fund () 378 The corelation between the fund returns is 0.0630 What is the Sharpe ratio of the best feasible CAL? (Do not round intermediete calculations. Round your answer to 4 decimal places.) Sharpe ratio

Essentials Of Investments
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
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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 4.3% The probability distributions of the risky funds are Expected eturn Standard Deviation Stock fund (S) Bond fund () 348 378 The corelation between the fund returns is 0.0630. What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio
Transcribed Image Text: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 4.3% The probability distributions of the risky funds are Expected eturn Standard Deviation Stock fund (S) Bond fund () 348 378 The corelation between the fund returns is 0.0630. What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio
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