A portfolio fund manager is analyzing three mutual funds. Namely, an equity fund ( E) , a long-term government & corporate bond fund (B), and a treasury bill (T bill) money market fund that yields a rate of 4%.

The probability distribution of the equity fund (E) and the bond fund (B) is shown as follows:

	Equity fund (E)	Bond fund (B)
	%	%
Expected Return	16	9
Standard Deviation	30	16

The correlation coefficient between the fund returns is 0.40

a. Find the investment proportions of the two risky funds, i.e. the Equity fund (E) and the Bond fund (B), in the minimum-variance portfolio.

3 marks

b. Calculate the expected rate of return and standard deviation of the minimum variance portfolio.

4 marks

c. Tabulate and draw the investment opportunity set of the two risky funds, i.e. the Equity fund (E) and the Bond fund (B). Use investment proportions for the Equity fund (E) of zero to 100% in increments of 20%.

Sketch a tangent from the risk-free rate to the opportunity set.

7 marks

d. Find the proportions of each asset, and the expected return and standard deviation of the optimal risky portfolio.

6 marks

e. Find the Sharpe ratio of the best feasible CAL.

3 marks

Need full steps please!