MICROECONOMICS(LL)COMPANION
21st Edition
ISBN: 9781260713541
Author: McConnell
Publisher: MCG
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Chapter 21, Problem 1RQ
To determine
Whether the statement is true or false about the monopoly .
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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.
Chapter 21 Solutions
MICROECONOMICS(LL)COMPANION
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