A pension fund manager is considering three assets. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill yielding 8%. The probability distribution of the risky funds is as follows:

	E[r]	std. dev.
Stock fund	20%	30%
Bond fund	12%	15%

The correlation between the fund returns is 0.10. What is the investment proportion in the minimum variance portfolio of stock fund?

With the same set of assets above, solve numerically for the proportions of stock fund in the optimal risky portfolio.