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 rate of 8%. The probability distribution of the risky funds is as follows:.
Expected Return Standard Deviation
Stock fund (S) 20% 30%
Bond fund (B) 12 15
The correlation between the fund returns is 0.16.
Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "%" sign in your response.)
Portfolio invested in the stock %
Portfolio invested in the bond %
Expected return %
Standard deviation %
Answers: 1
Another question on Business
Business, 21.06.2019 18:30
Which of the following accurately describes one way that individual goods differ from public goods? a. people can be excluded from using individual goods if they don't pay. b. all individual goods are normal goods. c. demand for individual goods is always inelastic. d. consumer rivalry results in decreasing marginal utility for individual goods.2b2t
Answers: 3
Business, 22.06.2019 03:30
Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.
Answers: 3
Business, 22.06.2019 19:20
Win goods inc. is a large multinational conglomerate. as a single business unit, the company's stock price is estimated to be $200. however, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. what is win goods experiencing in this scenario? a. diversification discount b. learning-curveeffects c. experience-curveeffects d. economies of scale
Answers: 1
You know the right answer?
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...
Questions
English, 18.12.2020 22:10
Physics, 18.12.2020 22:10
English, 18.12.2020 22:10
Mathematics, 18.12.2020 22:10
Mathematics, 18.12.2020 22:10
Chemistry, 18.12.2020 22:10
Advanced Placement (AP), 18.12.2020 22:10
Mathematics, 18.12.2020 22:10
History, 18.12.2020 22:10
