$5$ Chapter $7-$ excel $(6).$xisx

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$5.$ A pension

eviation $=30\%)$ thanger is considering three mutual funds. The first is a stock fund $($expected return $=20\%,$ standard

Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock

fund of $0-100\%$ in increments of $20\%.$

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Problem $20$ Serial Correlation

Problem $21$ Real Correlation $,+$A pension fund manager is considering three mutual funds. The first is a stock fund $($expected return $=20\%,$ standard

deviation $=30\%),$ the second is a long$-$term bond fund $($expected return $=12\%,$ standard deviation $=15\%),$ and the third

is a money market fund that provides a safe return of $8\%.$ The correlation between the fund returns is $.10.$

Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock

fund of $0-100\%$ in increments of $20\%.$