Finance Assignment | Professional Writing
May 30th, 2020
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 5.5%. The probability distributions of the risky funds are:
Expected Return 16% Stock fund (S) Bond fund (8) Standard Deviation 45% 39% 7% The correlation between the fund returns is .0385. What is the reward-to-volatility ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.) Reward-to-volatility ratio
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