Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a pension fund manager is considering three mutual

A pension fund manager is considering three mutual funds. The first is a stock fund,...

80.2K

Verified Solution

Question

Finance

image

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 4.8%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) Bond fund (B) 18% 5% 38% 32% The correlation between the fund returns is.1313 What is the reward-to-volatility ratio of the best feasible CAL? (Do not round intermediate calculations Round your answer to 4 decimal places.) Reward-to-volatility ratio

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Two banks in the area offer 30-year, $250,000 mortgages at 5.2 percent and charge a $3,900...

General Management
1.2K views

In each chapter of this book, we use a database for a fictitious company, Performance Lawn...

Physics
1.2K views

A hemispherical surface of radius R and refractive index 1 5 is polished as shown...

Physics
1.2K views

PASSAGE In de shunt motor if the supply voltage is 400 volt armature resistance is...

Basic Math
1.2K views

Raina wants to save money to purchase a car She buys an annuity with monthly...

Basic Math
1.2K views

Anwyn the Bold must rescue her fianc Marcin the Mighty along with his troop of...

Basic Math
1.2K views

An author published a book which was being sold online. The first month the author...

Statistics
1.2K views

Hypothesis testing concepts For a test of Ho p 0 60 the test statistic is...

Accounting
1.2K views

Minor Co. has a job order cost system and applies overhead based on departmental rates,...

Accounting
1.2K views

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions...

Accounting
1.2K views

Roger is a student who has received an academic scholarship to State University. The scholarship...

Accounting
1.2K views

Department G had 2,040 units 25% completed at the beginning of the period, 12,300 units...