$1$

Aequiled information

Section Break $((8-11)$

$[$The following information apples to the questions displayed betow$]$

A penaion fund manager is considering three mutual funde. The frat is a stock fund, the second is a iong$-$Ser$-$ governemert and corporate bond fund, and the third is a T$-$bil money market fund that yields a sure rate of $5\mathrm{.}5$ K $.$ The probabily sistrbutions of the risky funds are:

$\backslash$table$[[,$Expected Retien,Standafa Deviatise$],[$Stock fund $(5),106,$Standard$],[$Bond fund $($E$),105,274]]$

The cosselation befween the fund rephares is $0\mathrm{.}20.$

Problem $6-9($Algo$)$

Aequired:

Solve numeskaly for the proportions of each asset and for the expected retarn and standerd deviston of the cobinal faly porthia Neter Doe net round imermediate calculations and round your final asowers te $2$ decinel pleces.

$\backslash$table$[[$Purtite inveited in me slock,$5],[$Purkie inveried in the liond,$5],[$Expeited retum,$5],[$Suaderd deviation,$5]]$

$!$

Required information

Section Break $(8-11)$

$[$The following information applies to the questions displayed below.$]$

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 $5\mathrm{.}5\%.$ The probability distributions of the risky funds are:

$\backslash$table$[[,$Expected Return,Standard Deviation$],[$Stock fund $(S),16\%,36\%$