Question: Problem 7 - 8 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long -

Problem 7-8
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 6%. The characteristics of the risky funds are as follows:
The correlation between the fund returns is 0.13.
What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Enter your answer as a decimal rounded
to 4 places.)
Sharpe ratio
Problem 7-8 A pension fund manager is considering three mutual funds.

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