can you help me with these questions? and show work too? thanks ...

80.2K

Verified Solution

Question

Finance

can you help me with these questions? and show work too? thanks
image
image
image
image
The following data applies to Questions 4 to 10. A pension fund manager is considering three investment options. The first is a stock fund, the second is a corporate bond fund, and the third is a T-bill money market fund (the risk-free asset) that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected return (%) Standard Deviation (%) Stock fund (S) 15 Bond fund (B) 9 23 The correlation between the fund returns is 0.15. 32 Question 8 1 pts Suppose now that you have a risk aversion coefficient A=3 and want to construct a complete portfolio on the best feasible CAL. What should be the weight (y) allocated to the optimal risky portfolio? O 0.45 O 0.6 0.3 0.7 Question 9 1 pts For the complete portfolio you derived in Question#8, what is the standard deviation of the complete portfolio? 20.12 23.34 16.32 10.54 Question 10 1 pts For the complete portfolio you derived in Question#8, what is the proportion invested in the stock fund? O 0.31 0 O 0.36 0 0.29 0 O 0.1

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