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

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Finance

A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money market fundthat yields a sure rate of 5.4%. The probability distributions ofthe risky funds are:
Expected Return Standard Deviation
Stock fund (S) 15% 44%
Bond fund (B) 8% 38%
The correlation between the fund returns is .0684.
What is the reward-to-volatility ratio of the best feasible CAL?(Do not round intermediate calculations. Round your answerto 4 decimal places.)
Reward-to-volatility ratio

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A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money market fundthat yields a sure rate of 5.4%. The probability distributions ofthe risky funds are:Expected ReturnStandard DeviationStock fund (S)15%44%Bond fund (B)8%38%The correlation between the fund returns is .0684.What is the reward-to-volatility ratio of the best feasible CAL?(Do not round intermediate calculations. Round your answerto 4 decimal places.)Reward-to-volatility ratio

	Expected Return	Standard Deviation
Stock fund (S)	15%	44%
Bond fund (B)	8%	38%