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)		21	%			28	%
Bond fund (B)		12				18

The correlation between the fund returns is 0.09. 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 its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.)

	Rate of Return
Expected return
Standard deviation