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 4.9%. The probability distributions of the risky funds are: 10% 39% Stock fund (S) Bond fund (B) 5% 33% The correlation between the fund returns is 0.0030. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? Hint: Use the formula and parameters: The parameters of the opportunity set of possible portfolios are: E(rs) = 10%, E(TH) = 5%, S= 39%, 08= 33%, p=0.0030, x=4.9% The covariance between stocks and bonds is calculated as: Cox(rs, ra) = posos Wmin 632 - Cov(r's, re) 052 +682 - 2 Covrs PB) Variance for the min-var portfolio: Min = [W52052 + W520.92 +2wsws Cov(rs, ra)]1/2