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 habit money market fund that yields a rate of 8%. The expected returns and standard deviations are as follows: Stock Fund (S) Bond Fund (B) E(R) 16% 12% O(R) 38% 15% The correlation between the fund returns is 0.10. 1. 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? (2.0 marks) ***** Draw the investment opportunity set of the two risky funds on the efficient frontier (1.0 marks). 5 OD