Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 6, Problem 3QCMC
To determine
The impact of tax on consumers and sellers.
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1. A pension fund manager is considering three mutual funds. The first is a stock fund, the
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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
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The correlation between the fund returns is .10.
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