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Business, 13.04.2021 03:50 purplebandit96

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 4.4%. The probability distributions of the risky funds are: Expected ReturnStandard DeviationStock fund (S)144%Bond fund (B)5(%The correlation between the fund returns is .0214.Suppose now that your portfolio must yield an expected return of 13% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio

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