Question: please help A pension fund manager is considering three mutusl funds. The first is a stock fund, the socond is a long-term bond fund, and

please help

A pension fund manager is considering three mutusl funds. The first is a stock fund, the socond is a long-term bond fund, and the third is a money market fund that provides a safe return of 4%. The choracteristics of the risky funds aro as follows. The correlation between the fund returns is 0.12 . You require that your portfollo yleld an expected retuen of 12% and that it be effeient, that is, on the steepeu feasale CAL a. What is the standard deviation of your portsolio? (Round your answer to 2 decimal places.) b. What is the proportion invested in the money market fund and esch of the two fisky funds? (Round your answers te 2 declimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

PLEASE HELP :) 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...

Required Information Section Break (8-11) [The following informotion opplies to the questions disployed below.] A pension fund manager is considering three mutusl funds. The first is a stock fund,...

Requlred information Sectlon Break (8-11) [The following informotion ooplies to the questions disployed below] A pension fund manager is considering three mutusl funds. The first is a stock fund, the...

please help The Queens fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term corporate bond fund, and the third is a T-bill that yields a risk-free rate...

need some help 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...

please help!!!! The Queens fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term corporate bond fund, and the third is a T-bill that yields a risk-free...

Required information [The folliowing information applies to the questions displayed below] A pension fund manager is considering three mutual funds. The first is a stock fund, the socond is a...

I am completely lost, cannot find none of the answers to these questions Question 1 Suppose your expectations regarding the stock market are as follows: State of the Economy Boom Normal growth...

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,...

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 so T-bill money market fund that...

Q: A planar capacitor has two parallel armatures with an area of 53cm^2 each, separated by 4mm. There is a potential difference of 720 V between its armatures. Determine: a) The capacitance of the...

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $13,000 of cash and land with an FMV of $58,000. Her basis in the...

Jones & Co . recently went public and received $ 2 3 . 0 7 a share on their entire offer of 3 0 , 0 0 0 shares. Keeser & Co . served as the underwriter and sold 2 8 , 5 0 0 shares to the public at an...

Find the radius of gyration of a plate covering the region bounded by x=3, x=5, y=0, and y=4 with respect to the y-axis.

2. Observe a press conference on television. Who is being interviewed? Who is conducting the interview? What is the goal of the press conference? How is control distributed? List five questions that...

5. Create a questionnaire that you will use the next time you visit a physician. Focus your questions on what is already known about your condition and what you want to know about possible treatment....

4. Devise an interview strategy from the interviewers point of view