Question: Please answer all the problems in the blue boxes, with excel and show how its done! A pension fund manager is considering three mutual funds.

Please answer all the problems in the blue boxes, with excel

Please answer all the problems in the blue boxes, with excel and show how its done!

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: Stock fund (S) Bond fund (B) Expected Return 19% 14 Standard Deviation 318 23 The correlation between the fund returns is 0.10. You require that your portfolio yield an expected return of 16%, and that it be efficient, that is, on the steepest feasible CAL. a. What is the standard deviation of your portfolio? (Round your answer to 2 decimal places.) Standard deviation % b. What is the proportion invested in the money market fund and each of the two risky funds? (Round your answers to 2 decimal places.) Proportion Invested % Money market fund Stocks Bonds % %

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