Business
Business, 28.05.2020 02:01, Ebberman3410

A fund manager is considering three mutual funds. The 1st is a stock fund, the 2nd is a long-term government and corporate bond fund (investment grade), and the third is a T-bill money market fund that yields a sure rate of 3.00%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 12.00% 41.00% Bond fund (B) 5.00% 30.00% The correlation between the fund returns is 0.0667. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds

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