b) c) What is the etocted

Question Three (6 Marks) You are considering three mutual funds. The first is a stock fund, the second is a bond and the third is a money market fund that provides a safe return of The the risky funds are as follows: Standard Deviation Stock fund (S) Bond fund (B) Expected Return 12% The correlation between the fund returns is 0.10 a) b) c) What are the investment proportions in the optimal risky portfolio of the two risky funds? (3 Marks) What is the expected value ofretum? (I Marks) What is the standard deviation of its rate of return? (2Marks)