d) What are the EOL values? Which of the two funds appears to have more EOL? Which fund would you recommend? Explain. Please solve D!!!

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: Stock fund (S) Bond fund (B) Expected Return 16% Standard Deviation 34% 10% 25% The correlation between the fund returns is 0.17. Problem 6-9 (Algo) Required: 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.) × Answer is complete but not entirely correct. Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation 76.00 ×% 24.00 ×% 14.84 % 21.39 %

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             19%                                     34% Bond Fund             10                                         18 The correlation between the fund returns is 0.11.   a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds. (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)           a-2. What is the expected value and standard deviation of its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 14.83% 14.25% 3.77% 3.67% Stock fund Stock fund Type Bond fund Bond fund How much should you pay each month into a retirement account invested in the Vanguard bond fund if you wish to retire in 35 years with an investment valued at three million dollars? HINT [See Quick Example 2.] (Round your answer to the nearest cent.) $

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.10. Proportion in Stock Fund Expected Standard Return Deviation 20% 12 Tabulate the investment opportunity set of the two risky funds. Note: Round your answers to 2 decimal places. 0.00 % 20.00 40.00 60.00 80.00 100.00 Proportion in Bond Fund 30% 15 100.00 % 80.00 60.00 40.00 20.00 0.00 Expected Return % Standard Deviation %

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97. Year Fund Market Risk-Free 2018 -21.8% -41.5% 3% 2019 25.1 2020 14.1 2021 6.4 2022 -2.22 21.2 14.5 8.8 4 2 4 -5.2 3 What are the Sharpe and Treynor ratios for the fund? Note: Do not round intermediate calculations. Round your answers to 4 decimal places.

The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Fidelity Growth Vanguard Total Bond Vanguard Mutual Fund PIMCO 500 Index Total Return Company Market Index Rate of 14.83% 14.25% 2.77% 3.67% Return Туре Stock fund Stock fund Bond fund Bond fund Part 1 How much would be accumulated after 25 years in a retirement account invested entirely in the Vanguard stock fund with payments of $300 per month? HINT [See Quick Example 1.] (Round your answer to the nearest cent.) Part 2 For the past 25 years you have been depositing $700 per month in the Vanguard bond fund, and you have now transferred your current balance to the PIMCO bond fund, where you plan to continue depositing $700 per month until you retire in 30 years. How much can you anticipate having in the investment when you retire?…

Mr. Abir, after joining in Classic Mutual Fund has been asked to compute the returns. Apart from this, he must have to highlight the other areas of the fund.   Consider the following information about the returns on Classic Fund, the market returns, and the T-Bill returns.   Year Returns on Classic Fund % Market Index (Nifty Returns) % T-Bills Returns % 2003 15.3 10.5 5.4 2004 14.2 16.5 6.1 2005 -5.0 -7.9 5.9 2006 21.2 18.0 6.2 2007 18.3 15.5 5.5 2008 12.5 10.7 5.4 2009 -9.5 -3.0 5.8 2010 -7.3 4.9 6.1 2011 8.5 -7.5 6.2 2012 -11.4 3.0 5.8 2013 25.2 20.5 5.7 2014 22.0 18.0 5.4 2015 -16.3 4.3 6.0 2016 14.7 12.0 6.2 2017 18.5 15.3 5.8 2018 20.2 18.0 6.0   From the above information calculate all the inputs required for determining the   Sharpe’s Ratio Treynor Ratio Jensen Ratio

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.91. Year 2018 2019 2020 2021 2022 Fund -20.60% 25.10 13.90 7.60 -2.10 Market -39.50% 21.00 13.90 8.80 -5.20 Risk-Free 1% 3 2 4 2 Calculate Jensen's alpha for the fund, as well as its information ratio. Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.

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: Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.25. Expected Return 17% 11% 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.) X Answer is complete but not entirely correct. Expected return Standard deviation 14.67 X % 23.83 % Standard Deviation 38% 29%