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Help Sove E$.$ Exit

Required information

Section Break $(8-11)$

$[$The following informanion applies to the questions displyed below$]$

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long$-5$erm government and corporate bond fund, and the third is a T$-$ball money market fund that yelds a sure rate of $5\mathrm{.}5$K$.$ The probability dismibutions of the risky funds are

$\backslash$table$[[$Stock fund $(1),$Expected Return,Standard Devistion$],[$Bond fund $(5),175,345]]$

The correlation between the fund returns is $0\mathrm{.}25.$

Problem $6-10($Algo$)$

Fequired:

What is the Sharpe ratio of the best feasible CAI?

Mote: Do not round intermediane calculations. Round your answer to $4$ decimal places.

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Sharpe rato

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$[[$Stock fund $(S),$Expected Return,Standard Deviation$],[$Bond fund $(B),17\%,38\%$