A U.S. pension fund has a domestic portfolio with an expected return of 10 percent and a

Question:

A U.S. pension fund has a domestic with an of 10 percent and a standard deviation of 12 percent. It also invests in a foreign equity fund that has an expected dollar return of 11 percent and a dollar standard deviation of 20 percent. The correlation of the foreign and U.S. is 0.2. The current dollar interest rate is 8 percent. Would you say that the foreign equity is attractive from a risk-return viewpoint? Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...