A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows:

	Expected Return	Standard Deviation
Stock fund (S)	20%	30%
Bond fund (B)	12	15

The correlation between the fund returns is 0.10.

Required:

a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds?

a-2. What is the expected value and standard deviation of the minimum-variance portfolio rate of return?

Note: Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places!!! Thank you.