A pension fund manager is considering three mutual funds. The first is a stock fund, the...

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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and

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Answer 1

Answer #1

The Sharpe Ratio for Stock Fund = 12%-3%/41%= 0.2195

The Sharpe Ratio for Bond Fund = 5%-3%/30%= 0.0667

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Answer 2

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