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