Problem 7-9 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 7%. The characteristics of the risky funds are as follows: Expected Return Stock Fund (5) Bond fund (8) Standard deviation 32% 19 12 The correlation between the fund returns is 0.11 You require that your portfolio yield an expected return of 11%, and that it be efficient, that is on the steepest feasible CAL ..What is the standard deviation of your portfolio? (Round your answer to 2 decimal places.) Standard deviation b. What is the proportion invested in the money market fund and each of the two risky funds? (Round your answers to 2 decimal places.) Proportion Invested Money market fund Stocks % $ Bonds *