ow 1. +(50 marks) Assume that you are considering to construct a portfolio of three funds. The first is a T-bill fund, the second is a stock fund, and the third is a bond fund. The probability distributions of the three funds are in the following table and the correlation between the stock fund and bond fund is 0.2. Expected returne Standard deviation T-bill Fund (T) - 7% Stock Fund (S) 18% 30% Bond Fund (B) 9% 20% Suppose a weights composition of 0.5(T), 0.33(S), 0.17(B) for the three funds in a complete portfolio C is on the best feasible CAL. Then a. Suppose now that you want to construct another complete portfolio C* which must yield an expected return of 13% and be efficient, that is, on the best feasible CAL. What is the proportion you should invest in each of the three funds? (10- marks) b. What is the expected return and standard deviation of your portfolio C*? (5- marks) c. What is the slope of the CAL of your portfolio C*