mani A portfolio manager is constructing an optimal risky portfolio using two risky funds: stock c fund and bond fund. The probability distribution of the stock fund (S) is expected return 15% and standard deviation 32%. The probability distribution of the bond fund (B) is expected return 9% and standard deviation 23%. The correlation between the stock fund and bond fund is 0.15. The T-bill money market fund yields a sure rate of 5.5%. 1) Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. What expected return and standard deviation does your graph show for the minimum-variance portfolio? 2) Draw a tangent from the risk-free rate to the opportunity set. What does your graph show for the expected return and standard deviation of the optimal risky portfolio? 3) What is the Sharpe ratio of the best feasible CAL?