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 5.4%. The probability distributions ofthe risky funds are:
  Â
Expected Return
Standard Deviation
   Stock fund (S)
15% Â Â Â Â Â Â Â
44% Â Â Â Â Â Â Â Â
   Bond fund (B)
8%Â Â Â Â Â Â Â Â
38% Â Â Â Â Â Â Â Â
  Â
The correlation between the fund returns is .0684.
  Â
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.)
  Â
  Expected return
%
  Standard deviation
%
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