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1)A pension fund manager is considering three mutual funds

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1)A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 7%. The characteristics of the risky funds are as follows: Expected Return Stock fund (5) Bond fund (B) 19% 14 Standard Deviation 31% 23 The correlation between the fund returns is 0.10. What is the Sharpe ratio of the best feasible CAL? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.) Sharpe ratio.

2)Calculate the following: a. The monthly payments required on a $3,000 loan bearing a 12 percent per year interest rate (1 percent per month). The loan is to be paid back in twenty-four equal monthly installments. b. The total amount of interest paid over twenty-four months for the loan in (a). c. The monthly payments on a 25-year mortgage for $350,000. The interest rate is 7 percent per year. d. The total amount of interest paid over 25 years for the loan in (c).