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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 5.5%.The probability distributions of the risky funds are:Expected Return Stand. DevStock fund (S) E.R 15 % S.D. 32 %Bond fund (B) E.R. 9 % S.D. 23 %The correlation between the fund returns is 0.15.What is the Sharpe ratio of the best feasible CAL? (Do not roundintermediate calculations. Round your answer to 4 decimalplaces.)
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