Question: also 0.3871 is wrong Problem 7-8 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a

also 0.3871 is wrong Problem 7-8 A pension fund manager is
also 0.3871 is wrong

Problem 7-8 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 7%. The characteristics of the risky funds are as follows: 14:03 Stock fund (S) Bond fund (8) Expected Return 19% 14 Standard Deviation 31% 23 The correlation between the fund returns is 0.10 What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.) Answer is complete but not entirely correct. Sharpe ratio 0.3043

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