A pension fund manager is considering three mutual funds. The
first is a stock fund, the second is a longterm government and
corporate bond fund, and the third is a Tbill money market fund
that yields a sure rate of 4.5%. The probability distributions of
the risky funds are:
Expected Return  Standard Deviation  
Stock fund (S)  15%  35% 
Bond fund (B)  6%  29% 
The correlation between the fund returns is 0.0517.
What is the expected return and standard deviation for the
minimumvariance portfolio of the two risky funds? (Do not
round intermediate calculations. Round your answers to 2 decimal
places.)

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