#2. The current risk free rate is 5% and the expected return on Fund A is 10%. The standard deviation of Fund A is 30%. Your client has $4,000,000 to invest. (a) If your client invests $3,000,000 in fund A and $1,000,000 in risk-free T-bills, what will be the expected return and standard deviation of your client's portfolio? (b) If your client would like to invest in the risk-free security and in Fund A to create a portfolio with a standard deviation of 20%, what will the expected return be of the resulting portfolio? (c) Suppose your client can also invest in Fund B. Fund B has an expected return of 10% and a standard deviation of 20%. The correlation between Fund A and Fund B is zero. Suppose the investor is trying to invest her funds solely in Fund A and Fund B to create a portfolio with a standard deviation of 20%. Let x represent the fraction of the investor's funds that would be put in Fund A when creating this portfolio thus 1-x will be the fraction invested in Fund B. Write down an equation that if you solved would reveal the fraction of the investor's funds (i.e., x) to be placed into Fund A. Do not solve the equation, just set it u