5 Part 2 of 2 1.5 points [The following information applies to the questions displayed below.] A pension fund manager is

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5 Part 2 Of 2 1 5 Points The Following Information Applies To The Questions Displayed Below A Pension Fund Manager Is 1 (48.74 KiB) Viewed 13 times

5 Part 2 of 2 1.5 points [The following information applies to the questions displayed below.] 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 Standard Deviation 32% 23% Stock Fund (S) 15% 9% Bond fund (B) The correlation between the fund returns is 0.15. Problem 6-8 (Static) Required: What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Expected return 6.94 % 18.23% Standard deviation Return to question