You have decided to invest in three mutual funds: one in equities, one in long corporate and government bonds, and a money market fund invested in T-bills yielding 5%. Your estimate of the relevant parameters for the equities and bond funds are as follows:   Expected Return Standard Deviation Equities .15 .30 Bonds .06 .09   The correlation between the fund returns is 0.12. Determine the best feasible CAL and calculate its reward-to-volatility ratio.

Q: unit 8-8

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Q: quiz 8-9

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Q: UNIT 7-6

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