QUESTION 11 70 pm portfolio manager is considering investing in two risky funds. The first fund is composed of bonds while the second fund a fully inued in stock The Tresakury bill rate is 6% Expected Return Standard Deviation Bond Fund (B) 8% 13% Stock Fund (S) 12% 18% The correlation between the two funds is 0.4 1. What are the weights of Band in the minimum-variance portfolio of the two risky funda? 2. Find the composition of the optimal risky portfolio. 3. Calculate the expected return of the optimal risky portfolio 4. Calculate the standard deviation of the optimal risky portfolio 5. What is the weight of the risky portfolio (composed of B and S) in the optimal complete portfolio of an investor with a degree of risk version equal 37 6. You require that your portfolio yield an expected return of 13%, and that it be efficient, on the best feasible CAL. a. What is the proportion invested in the T-bill and each of the two risky funds? b. What is the standard deviation of your portfolio? For the toolbar, press ALT F10 (PC) or ALT+FN.F10 (Mac) I. BI U. Paragraph Arial 14px V A. 111 Save All A Clone Window Click Save and Submit to save and submit. Click Save All Answers to see all answers