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

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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 rate of 7%. The probability distribution of the riskyfunds is as follows: Expected Return Standard Deviation Stock fund(S) 22 % 32 % Bond fund (B) 12 19 The correlation between the fundreturns is 0.11. What is the Sharpe ratio of the best feasibleCAL?

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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 rate of 7%. The probability distribution of the riskyfunds is as follows: Expected Return Standard Deviation Stock fund(S) 22 % 32 % Bond fund (B) 12 19 The correlation between the fundreturns is 0.11. What is the Sharpe ratio of the best feasibleCAL?

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