A fund manager in ABC asset management wishes to invest in two different funds. Fund A is a stock fund and fund B is comprised of long-term government and corporate bond. The expected return and standard deviation of the funds are as follows:

Stock fund A

- Expected Return 8%

- Standard Deviation 12% Bond fund

B - Expected Return 13%

- Standard Deviation 20%

The correlation between funds A and B is 0.30. The risk free rate is 6%. Assume there is no short selling.

Calculate the minimum-variance portfolio of the two risky funds and show the expected return and standard deviation of this portfolio. Provide critical explanations.