A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are:

Expected Return. Standard Deviation

Stock fund (S). 16%. 45%.

Bond fund (B). 7%. 39%

The correlation between the fund returns is 0.0385.

What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?