A fund manager is considering three mutual funds. The 1st is a stock fund, the 2nd is a long-term government and corporate bond fund Investment grade), and the third is a T- bill money market fund that yields a sure rate of 3.00%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (5) 12.00% 41.00% Bond fund (B) 5.00% 30.00% The correlation between the fund returns is 0.0667. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? Expected return is: 7.37% and the Standard deviation is: 24.96% OB Expected return is: 5.08% and the Standard deviation is: 24.96% . Expected return is: 7.37% and the Standard deviation is: 28.13% Expected return is: 5.08% and the Standard deviation is: 28.13% OD Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 -36% -11% Mild recession 0.20 -12.0% 13% Normal growth 0.35 12% 4% Boom 0.35 32% 5% Calculate the values of mean return and variance for the stock fund. A. Mean return: 9.40% and Variance: 478.84 B. Mean return: 9.40% and Variance: 414.32 C. Mean return: 6.75% and Variance: 414.32 D. Mean return: 6.75% and Variance: 478.84