Question: I am having issues finding the proportion of the stock fund, correct answer is .1727 I want to see how you get it. 0/1 pts
0/1 pts Question 13 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 rate of 0.04. The probability distribution of the risky funds is as follows: Expected ret. std. dev. Stock fund 0.17 0.27 Bond fund 0.06 0.11 The correlation between the fund returns is 0.12. Jessica has a risk aversion level of 10. In her optimal complete portfolio (including stocks, bonds, and risk-free assets), what is the proportion of the stock fund? Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321
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