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:

The correlation between the fund returns is $0\mathrm{.}13.$

Required:

a$-1.$ What are the investment proportions in the minimum$-$variance portfolio of the two risky funds?

a$-2.$ What are the expected value and standard deviation of the minimum$-$variance portfolio rate of return?

Complete this question by entering your answers in the tabs below.

What are the investment proportions in the minimum$-$variance portfolio of the two risky funds?

Note: Do not round intermediate calculations. Enter your answers as decimals rounded to $4$ places.

Portfolio invested in the stock

Portfolio invested in the bond