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,...

60.1K

Verified Solution

Question

Finance

image
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 sure rate of 5,5% The correlation between the stock and bond fund returns is 0.15. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock Fund (S) 15% 32% Bond Fund ( B9% 23% What would be the investment proportions of your portfolio if you were limited to only the stock and bond funds and the portfolio has to yield an expected return of 12%? 100% in S: 0% in B 77% in S. 23% in B 32% in S, 68% in 50% in S: 50% in B

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

Q

Express monetary answers to the nearest whole dollar. Express percentage answers to the nearest hundredth 22.Tiffanywould like...

Finance
Q

Your qPCR quantification results show that you have recovered a total of 30ng in 200µl of...

Biology
Q

Descibe the elements of the marketing mix and how they impact consumer buying behavior.

General Management
Q

Figure 6 24 is one of the most important unifying figures in the book In...

Biology
Q

This type of agar allows safe transport of specimen O Defined Agar O Transfer Agar...

Biology
Q

in front of the centre of a mirror of width d hung vertically on a...

Physics
Q

Determine drug dosage by patient s weight For each kilogram of a person s weight...

Basic Math
Q

Northeastern University is considering replacing some Xerox copiers with faster copiers purchased from Brother. The...

Accounting
Q

Section A provides a list of items related to various investment portfolios that have been...

Accounting
Q

1) Introduce the concept of work-life balance (WLB) . What is work-life balance? answer...

Accounting
Q

It is appropriate to stop recording depreciation expense when the assets: a) depreciable cost is...

Accounting
Q

1. 2. Example: Let's...

Finance