3. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe asset with return of 8%. The characteristics of the risky funds are as follow: Lorrelation =u (a) In the optimal risky portfolio, the bond fund takes up 40% and the stock fund takes up 60%. Calculate the expected return and standard deviation of the optimal risk portfolio. (b) What is the Sharpe ratio of the best feasible CAL? (c) Calculate the expected return and standard deviation of the global minimum variance portfolio. (d) Draw the efficient frontier of risky assets and the optimal CAL. 3. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe asset with return of 8%. The characteristics of the risky funds are as follow: Lorrelation =u (a) In the optimal risky portfolio, the bond fund takes up 40% and the stock fund takes up 60%. Calculate the expected return and standard deviation of the optimal risk portfolio. (b) What is the Sharpe ratio of the best feasible CAL? (c) Calculate the expected return and standard deviation of the global minimum variance portfolio. (d) Draw the efficient frontier of risky assets and the optimal CAL