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 5.3%. The probability distributions ofthe risky funds are:

Expected Return Standard Deviation
   Stock fund (S) 14%         43%
   Bond fund (B) 7%         37%

The correlation between the fund returns is .0459.

What is the expected return and standard deviation for theminimum-variance portfolio of the two risky funds? (Do notround intermediate calculations. Round your answers to 2 decimalplaces.)

  Expected return %
  Standard deviation %

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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 5.3%. The probability distributions ofthe risky funds are: Expected ReturnStandard Deviation Stock fund (S)14% 43% Bond fund (B)7% 37% The correlation between the fund returns is .0459. What is the expected return and standard deviation for theminimum-variance portfolio of the two risky funds? (Do notround intermediate calculations. Round your answers to 2 decimalplaces.) Expected return% Standard deviation%

	Expected Return	Standard Deviation
Stock fund (S)	14%	43%
Bond fund (B)	7%	37%