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,...

50.1K

Verified Solution

Question

Finance

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 rate of 4.5%. The probability distribution of the risky funds is as follows:

I was able to get the bottom two correct but Im not sure why I cant get the top two.

image

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term govemment and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 4.5%. The probability distribution of the risky funds is as follows: Stock fund (S) Bond fund (B) Expected Return 15% Standard Deviation 35% 29 The correlation between the fund retums is 0.15 Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "%" sign in your response.) Portfolio invested in the stock Portfolio invested in the bond Expected retum Standard deviation 9.62 % 22.89 %

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

Statistics
1.2K views

supposed 57% of the population has a retirement account. if a random samples of size 421...

General Management
1.2K views

What are creative ways that you can retain your first employee and ensure you are meeting...

Biology
1.2K views

Given the agar plate above measuring the diffusion rates of Potassium permaganate orange and methylene...

Physics
1.2K views

CAREER ENDEAVOUR Problem Consider a two dimensional hexagonal lattice if lattice spacing a 3 and...

Basic Math
1.2K views

Suppose Robbie is the educational director for a group of teen testprep programs in Nevada....

Calculus
1.2K views

6 Find the exact value no calculator cos sin 4 5

Algebra
1.2K views

5 18 13

Algebra
1.2K views

for a cache memory of size 32KB how many cache line does the cache hold...

Accounting
1.2K views

Rogers Company is studying a project that would have a ten-year life and would require...

Accounting
1.2K views

Smith, Inc., has the following stockholders equity accounts as of January 1, 2018: ...

Accounting
1.2K views

David and Lilly Fernandez have determined their tax llabillty on their joint tax return to...

Accounting
1.2K views

The following information was available to reconcile Montrose Company's book balance of Cash with its...