Example 4.11: A stock fund has an expected return of 0.15 and 0,0625. A bond fund has an expected return of 0.05 and variance of correlation coefficient between the two funds is -0.2. 15 and variance of iance of 0.0016. The with 80% in the (a) What is the expected return and variance of the portfolio with 800 stock fund and 20% in the bond fund? (b) What is the expected return and variance of the portfolio with 20% in stock fund and 80% in the bond fund? (c) How would you weight the two funds in your portfolio so that your portfolio has the lowest possible variance