PROBLEM You have the following information concerning the standard deviation and mean for the rates of return on three risky mutual funds: Fund Rate of Return Standard Deviation 1 .136 .14 2 .166 .20 3 .18 .25 (14) [5] Suppose your target expected rate of return is .11. You can obtain this target expected rate by investing in the riskless asset and mutual fund 1, or the riskless asset and mutual fund 2, or the riskless asset and mutual fund 3. If the riskless rate of interest is .08, and if you obtain your target rate by investing in the riskless asset and mutual fund 2, What will be the standard deviation of your rate of return? (a)* .07. (b) .09. (c) .20. ((1) Need more information