29. A pension fund manager is considering three mutual funds, the stock fund, the bond fund and a T-bill money market fund that yields a sure rate of 1%. The distributions of the risky funds are: E(r) Std dev Stock fund 10% 20% Bond fund 5% 15% The correlation between the stock fund and the bond fund is 0.10. The tangency portfolio should invest in the stock fund? 1) 10.58% 2) 12.42% 3) 33.67% 4) 40.16% 5) 58.89%