Survey Of Economics
Survey Of Economics
10th Edition
ISBN: 9781337111522
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 18, Problem 2SQP

(a)

To determine

The potential of the item to be used as money.

(b)

To determine

The potential of the item to be used as money.

(c)

To determine

The potential of the item to be used as money.

(d)

To determine

The potential of the item to be used as money.

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What are some of the question s that I can ask my economic teacher?
Answer question 2 only.
1. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate fund, and the third is a (riskless) T-bill money market fund that yields a rate of 8%. The probability distributions of the risky funds have the following characteristics: Standard Deviation (%) Expected return (%) Stock fund (Rs) 20 30 Bond fund (RB) 12 15 The correlation between the fund returns is .10.

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