Chapter 7 Assignment Saved Help Save & Exit Submit Check my work 1 Problem 7-4 20 points 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: Expected Return Standard deviation Stock fund (S) 16% 389 Bond fund (B) 12 21 eBook Print The correlation between the fund returns is 0.12. 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.) References Portfolio invested in the stock Portfolio invested in the bond a-2. What are 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 Standard deviation Mc Graw HIRI Education Prev 1 of 5 Next >