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 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.
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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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 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.
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