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)	24%	33%
16Bond fund (B)	14%	22%

The correlation between the fund returns is 0.14

a-1 What are the investment proportions in the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

Portfolio invested in the stock ______

Portfolio invested in the bond ______

a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? (Do not round intermediat calculations. Enter your answers as decimals rounded to 4 places.)

Expected Return - (Rate of return)?

Expected Deviation - (Rate of return)?