A pension fund manager is considering three mutual funds.

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 4.0%. The probability distributions of the risky funds are:

 Expected ReturnStandard DeviationStock fund (S)10%32%Bond fund (B)7%24% 

The correlation between the fund returns is .1250.

What is the reward-to-volatility ratio of the best feasible CAL? (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Reward-to-volatility ratio _____?

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