Stock 1 has a expected return of 12% and a standard deviation of 15%. Stock 2 has a expected return of 10% and a standard deviation of 12%. Correlation between the two stocks is 0.3. What is the investment proportion of stock 1 in the minimum variance portfolio?

Now assume a risk-free bond with a rate of return of 8%. Can you achieve a better rate for the same (minimum) variance, using the risk-free bond as well?