Question

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 4.3%. The probability distributions of the risky funds are:

Expected Return | Standard Deviation | |

Stock fund (S) |
13% | 34% |

Bond fund (B) |
6% | 27% |

The correlation between the fund returns is .0630.

What is the reward-to-volatility ratio of the best feasible CAL?
**(Do not round intermediate calculations. Round your answer
to 4 decimal places.**

Answer #1

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 4.3%. The probability distributions of
the risky funds are:
Expected Return
Standard Deviation
Stock fund (S)
13%
34%
Bond fund (B)
6%
27%
The correlation between the fund returns is 0.0630.
What is the Sharpe ratio of the best feasible...

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. What is the reward-to-volatility ratio of the
best feasible...

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 4.1%. The probability distributions of
the risky funds are:
Expected Return
Standard Deviation
Stock fund (S)
11%
33%
Bond fund (B)
8%
25%
The correlation between the fund returns is .1560.
What is the reward-to-volatility ratio of the best feasible...

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 4.4%. The probability distributions of
the risky funds are: Expected Return Standard Deviation Stock fund
(S) 14% 34% Bond fund (B) 5% 28% The correlation between the fund
returns is 0.0214. What is the Sharpe ratio of the best feasible...

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 4.3%. The probability distributions of
the risky funds are:
Expected Return Standard Deviation
Stock fund (S) 13 % 34 %
Bond fund (B) 6 % 27 %
The correlation between the fund returns is .0630.
Suppose now that your portfolio...

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 5.6%. The probability distributions of
the risky funds are:
Expected Return
Standard Deviation
Stock fund (S)
17%
46%
Bond fund (B)
8%
40%
The correlation between the fund returns is 0.0600.
What is the Sharpe ratio of the best feasible...

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:
Expected Return (Left) Standard Deviation (Right)
Stock fund (S) 16% 45%
Bond fund (B) 7% 39%
The correlation between the fund returns is 0.0385. What is the
Sharpe ratio of the...

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:
Expected Return
Standard Deviation
Stock fund (S)
15%
32%
Bond fund (B)
9%
23%
The correlation between the fund returns is .15.
What is the Sharpe ratio of the best...

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: Expected Return Standard Deviation Stock fund
(S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the
fund returns is 0.15. Suppose now that your portfolio...

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 percent. The probability distribution of
the risky funds is as follows:
Expected Return
Standard Deviation
Stock fund (S)
.20
.30
Bond fund (B)
.12
.15
The correlation between the fund returns is 0.10.
What is the reward-to-variability ratio of the...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago

asked 5 hours ago

asked 5 hours ago

asked 5 hours ago