pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund and e third is a money market fund. The money market fund yields a risk-free return of 5%. The inputs for the risky funds are given in the llowing table. Fund Expected Return 13% 6% 33% 16% he correlation coefficient between the stock and the bond funds is 0.4. What is the expected return and the variance for a portfolio that invests 54% in the stock fund and 46% in the bond fund? (Round termediate calculations to at least 4 decimal places and final answers to 2 decimal places.) Stock fund Bond fund Expected return Variance Standard Deviation % %2 What is the expected return and the variance for a portfolio that invests 54% in the stock fund and 46% in the money market fund? Hint: Note that the correlation coefficient between the portfolio and the money market fund is zero.] (Round intermediate calculations

pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund and e third is a money market fund. The money market fund yields a risk-free return of 5%. The inputs for the risky funds are given in the llowing table. Fund Expected Return 13% 6% 33% 16% he correlation coefficient between the stock and the bond funds is 0.4. What is the expected return and the variance for a portfolio that invests 54% in the stock fund and 46% in the bond fund? (Round termediate calculations to at least 4 decimal places and final answers to 2 decimal places.) Stock fund Bond fund Expected return Variance Standard Deviation % %2 What is the expected return and the variance for a portfolio that invests 54% in the stock fund and 46% in the money market fund? Hint: Note that the correlation coefficient between the portfolio and the money market fund is zero.] (Round intermediate calculations

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 2FPE

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