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-b money market fund that yields a sure rate return of 5%. The probability distributions of the risky funds are: 3. Expected return 14% Standard Deviation Stock fund (S) Bond fund (B) 130% 20 hat is the expected return and standard deviation of the minimum variance portfolio? What is the expected return and standard deviation of the optimal risky portfolio? a. W b. c. What is the Sharpe ratio of the best feasible CAL? d. Suppose your client's risk aversion is 2. What is the asset allocation of his fund to the risky portfolio (i.e. y)? 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-b money market fund that yields a sure rate return of 5%. The probability distributions of the risky funds are: 3. Expected return 14% Standard Deviation Stock fund (S) Bond fund (B) 130% 20 hat is the expected return and standard deviation of the minimum variance portfolio? What is the expected return and standard deviation of the optimal risky portfolio? a. W b. c. What is the Sharpe ratio of the best feasible CAL? d. Suppose your client's risk aversion is 2. What is the asset allocation of his fund to the risky portfolio (i.e. y)