Not sure what i'm doing wrong, if you could solve it in excel that would be best. Thanks! Standard deviationb-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimalplaces.)Proportion invested in the T-bill fund%StocksBondsb-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to2 decimal places.)Proportion Invested%%% Required information[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 governmentand corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probabilitydistributions of the risky funds are:Expected Return17%11%Stock fund (S)Bond fund (B)The correlation between the fund returns is 0.25.Standard Deviation32%23%Suppose now that your portfolio must yield an expected return of 14% and be efficient, that is, on the best feasible CAL.Required:

CAL is a graphical representation of the relationship between a risk-free asset and a risky asset.…

Answered: tandard deviation % 1. What is the…

tandard deviation % 1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal aces.) roportion invested in the T-bill fund %

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 2FPE

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Question

Not sure what i'm doing wrong, if you could solve it in excel that would be best. Thanks!

Standard deviation
b-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal
places.)
Proportion invested in the T-bill fund
%
Stocks
Bonds
b-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to
2 decimal places.)
Proportion Invested
%
%
%

Required information
[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
17%
11%
Stock fund (S)
Bond fund (B)
The correlation between the fund returns is 0.25.
Standard Deviation
32%
23%
Suppose now that your portfolio must yield an expected return of 14% and be efficient, that is, on the best feasible CAL.
Required:

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Step 1: Define Capital Allocation Line (CAL):

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Required information [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: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.15. Expected Return 15% 9% Standard deviation Suppose now that your portfolio must yield an expected return of 12% 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 to 2 decimal places.) % Standard Deviation 38% 29%
Required Information [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: Stock fund (S) Expected Return 17% 11% Bond fund (B) The correlation between the fund returns is 0.10. Standard Deviation 40% 31% Required: 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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Required information [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: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.25 . Required: 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.) Expected Return Correct, Standard Deviation Incorrect Required: Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places.) Required: What is the Sharpe ratio of the best feasible…
give me answer in step by step
Required information [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 Standard Deviation Stock fund (Ss) Bond fund (B) 176 328 11 238 The correlation between the fund returns is 0.30. Required: What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Answer is complete but not entirely correct. Sharpe ratio 0.3594
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