5. (10pts ) A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a a. (2 pts) Calculate the following variables: Write down the formulas you used to complete the table above b. (2 pts.) Tabulate the investment opportunities set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 10%. From these options identify the portfolios closest to the minimum variance and optimal portfolios (do not use formulas)? Explain how to identify them. Visual approximation of the portfolio closest to the minimum variance portfolio and explanation on how to find it: Visual approximation of the portfolio closest to the optimal portfolio and explanation on how to find it: c. (2 pts.) Using the formulas in Ch. 6, determine the weight of the minimum variance and optimal portfolios in the investment opportunities set. How close did your approximation (from looking at the table in part b.) look in comparison to exact values? d. (2 pts.) In the mean variance graph below: 1) label the axes, 2) draw the investment opportunities set, 3) identify the minimum and optimal portfolios, 4) draw the best feasible CAL, 5) draw the CML (assume an expected return of the S\&P500 of 12% with standard deviation of 18% ). d. (2 pts.) Find the percent of wealth that your client should borrow/invest at the risk-free rate if he/she wants an efficient portfolio with an expected return of 17%