a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follo Expected Return Standard Deviation 21% 13 Stock fund (S) Bond fund (B) he correlation between the fund returns is 0.13. 1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? (Do not alculations. Enter your answers as decimals rounded to 4 places.) Portfolio invested in the stock Portfolio invested in the bond 36% 22 2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? alculations. Enter your answers as decimals rounded to 4 places.) Expected return Rate of Return

a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follo Expected Return Standard Deviation 21% 13 Stock fund (S) Bond fund (B) he correlation between the fund returns is 0.13. 1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? (Do not alculations. Enter your answers as decimals rounded to 4 places.) Portfolio invested in the stock Portfolio invested in the bond 36% 22 2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? alculations. Enter your answers as decimals rounded to 4 places.) Expected return Rate of Return

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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