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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long - term bond fund, and

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 0.13.
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.)
a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? (Do not round intermediate
calculations. Enter your answers as decimals rounded to 4 places.)
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