3. 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 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation 15% Stock fund (S) Bond fund (B) 9 32% 23 The correlation between the fund return is .15. A. Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. B. Compute the weights of stock fund and bond fund for the optimal risky portfolio. What is the expected return and standard deviation of the optimal risky portfolio? C. What is the Sharpe ratio of the best feasible CAL? D. Suppose now that your complete portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. What is the standard deviation of your complete portfolio? What is the proportion invested in the T- bill fund and each of the two risky funds?