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

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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?

Reference no: EM132200330

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