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 Return			Standard Deviation
Stock fund (S)		19%			34%
Bond fund (B)		10%			18%

The correlation coefficient between the fund returns is 0.11.

What is the standard deviation of the minimum-variance portfolio?

12.88%

16.58%

15.64%

11.32%

13.54%