A pension fund manager is considering three funds. The first is a stock with expected return of 20% and standard deviation of 30%. The second is a long term corporate bond fund with expected return of 12% and standard deviation of 15%. The third is a money market fund that yields a rate of 8%. The correlation between the stock fund and the bond fund is 0.1. What is the investment proportions of the optimum risky portfolio of the two risky funds?

12. A pension fund manager is considering three funds. The first is a stock fund with expected return of 2017 and standard deviation of 30%. The second is a long term corporate bond fund with expected return of 12% and standard deviation of 15. The third is a money market fund that yields a rate of 14. The correlation between the stock fund and the bond lund is 0.1 What is the investment proportions of the optimum risky portfolio of the two risky funds