Pension Fund 2023 Business & Finance
2023 A pension fund manager is considering three mutual funds The first is a
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 3.0%. The probability distributions of the risky funds are
What is the standard deviation of your portfolio?
What is the proportion invested in the T-bill fund
What is the proportion invested in each of the two risky funds?
|
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 3.0%. The probability distributions of the risky funds are: |
|
|
Expected Return |
Standard Deviation |
||
|
Stock fund (S) |
12 |
% |
41 |
% |
|
Bond fund (B) |
5 |
% |
30 |
% |
|
|
||||
|
The correlation between the fund returns is .0667. |
|
Suppose now that your portfolio must yield an expected return of 9% and be efficient, that is, on the best feasible CAL. |
|
a. |
What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
|
Standard deviation |
[removed]% |
|
b-1. |
What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
|
Proportion invested in the T-bill fund |
[removed]% |
|
b-2. |
What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
|
|
Proportion Invested |
|
Stocks |
[removed]% |
|
Bonds |
[removed]% |
We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.
Place Order Now