Pension fund | Business & Finance homework help


A pension capital supervisor is regarding three common capitals. The original is a accumulation capital, the avoid is a long-term council and oppidan association capital, and the third is a T-bill coin traffic capital that renders a secure trounce of 3.0%. The presumption distributions of the foolhardy capitals are

What is the banner intermission of your portfolio?

What is the distribution invested in the T-bill capital

What is the distribution invested in each of the two foolhardy capitals?

 

A pension capital supervisor is regarding three common capitals. The original is a accumulation capital, the avoid is a long-term council and oppidan association capital, and the third is a T-bill coin traffic capital that renders a secure trounce of 3.0%. The presumption distributions of the foolhardy capitals are:

   

 

Expected Return

Standard Deviation

  Stock capital (S)

12

%

41

%

  Bond capital (B)

5

%

30

%

   

The correspondence among the capital requites is .0667.

 

Suppose now that your portfolio must render an expected requite of 9% and be efficient, that is, on the best manageable CAL.

  

a.

What is the banner intermission of your portfolio? (Do not globular moderate calculations. Globular your defense to 2 decimal places.)

   

  Standard intermission

%  

    

b-1.

What is the distribution invested in the T-bill capital? (Do not globular moderate calculations. Globular your defense to 2 decimal places.)

   

  Proportion invested in the T-bill capital

%  

   

b-2.

What is the distribution invested in each of the two foolhardy capitals? (Do not globular moderate calculations. Globular your defenses to 2 decimal places.)

 

  

     Proportion Invested

  Stocks

%  

  Bonds

%