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 TBill money market fund that yields a rate of 8%. The correlation between the stock fund and the bond fund is 0.1. i. What are the investment proportions in the minimum-variance portfolio of the two risky funds, and what is the expected value and standard deviation of its rate of return? (7 marks) ii. Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (10 Marks) iii. What is the Sharpe ratio of the best feasible Capital Allocation Line? (Hint: The Sharpe ratio of the Optimal Risky Portfolio)