Question: How do you calculate the expected return and standard deviation? A pension fund manager is considering three mutual funds . The first is a stock

How do you calculate the expected return and standard deviation? A

How do you calculate the expected return and standard deviation?

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 4.6%6 . The probability distributions of the risky* funds are* EXPECTEd Return Standard Deviation Stock Fund 15 ) 167 Bond Fund ( 8 ) 30% The correlation between the fund returns is . 0800. What is the expected return and standard deviation for the minimum - variance portfolio of the two risky funds ? ( Do not round intermediate calculations . Round your answers to 2 decimal places . )

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