Q1. A pension fund manager is considering three mutual funds. The first is a stock fund, the is a long-term government and corporate bond fund, and the third is a T-bill money marked yields 8%. The probability distribution of the risky fund is as follows: third is a T-bill money market fund that Expected Return Standard Deviation Stock Fund (5) 20% 30% Bond Fund (B) 12% 15% The correlation between the fund returns is 0.10. viation of a portfolio of the two risky assets for the a. Calculate expected return and standard deviation of a portfolio of the two risky following proportions: Stock Fund 0% 60% 100% Bond Fund 100% 40% 0% b. Draw Capital allocation Line. (25 points)