Required Information

$[$The following informetion applies to the questions dlsplayed below.$]$

A persion fund mansger ls considering three mutual funds. The first is $s$ stock fund, the second is s lang$-$term government

and corporste bond fund, snd the third is a T$-$bill money market fund that ylelda a sure rate of $5\mathrm{.}5\%.$ The probability

distrlaution: of the risky funds are:

The correlation between the fund returns is $0\mathrm{.}15.$

Suppose now that your portfolo must yleld an expected retum of $14\%$ and be efficient, thst is$,$ on the beat fesalble CAL.

Required:

What is the standard devation of your portiolio?

Note: Do not round Intermedlate calculations. Round your answer to $2$ decimal places.

Standaed deviation

B$-1.$ What is the proportion invested in the T$-$bill fund?

Note: Do not round Intermedlate calculationa. Round your answer to $2$ decimal places.

Proportion invested in the T$-$bill fund

b$-2$ What is the proportion invested in each of the two risky funds?

Note: Do not round Intermedlate calculations. Round your answers to $2$ decimal places.

$|$ Proportion Invectsd

Stocks

bonds