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)	22%	37%
Bond fund (B)	14	23

The correlation between the fund returns is 0.10.

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 .2569
Portfolio invested in the bond .7431

a-2.	What is 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	.1605
Standard deviation
not sure my answers are correct but i followed how the book did it