Question: Problem 6-10 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate

Problem 6-10 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 3.0%. The probability distributions of the risky funds are: Expected Meturn Standard Deviation Stock fund (5) Bond Fund (8) 12% 5 41% 30% The correlation between the fund returns is 0.0667. What is the Sharpe ratio of the best feasible CAL? (Do not round Intermediate calculations. Round your answer to 4 decimal places.) Sharpe ratio

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