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: Stock fund (S) 10% Bond fund (B) 5% 39% 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: I The parameters of the opportunity set of possible portfolios are: Elcs) = 10%, Elts) = 5%, S = 39%, ge= 33%, p=0.0030, Q = 4.9% The covariance between stocks and bonds is calculated as: Sexlesta) = Besgal Log-Covers, Ta) Wu5)-83 +032-2 Covies to Variance for the min-var portfolio: Gar=[ws'os? + wios? +2wsw. Soxles 2