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 rate of 8%. The probability distribution of the risky funds is as follows: Expected Standard return deviation Stock fund (5) 20% 30% Bond Fund (B) 12% 15% Correlation between fund return is 0.10 1. What are the investment proportion in the minimum variance portfolio of the two risky funds, and what is the expected value and standard deviation of its rate of return? (20 points) 2. Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportion for the stock fund of zero to 100% in increments of (10 points) 3. Solve numerically for the proportion of each asset and for the expected return and standard deviation of the optimal risky portfolio (20 points) 4. What is reward-to-volatility ratio of the best feasible CAL? (10 point) 5. You require that your portfolio yield an expected return of 13%, and to be the best feasible CAL, what is the standard deviation of your portfolio? (10 point)