Stock fund (s) expected return 17% and standard deviation of 34%. Bond Fund has expected 11% and standard deviatin 25%. The correlation between the fund returns is 0.15 and the risk free rate is 5.5%. a) What is the expected return and standard deviation for hte minimum-variance portfolio of the two risky funds? Calculate expected return and standard deviation?

b) Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio? % of portfolio invested in the stock % of portfolio invested in the bond expeted return Standard deviation c) What is the sharpe ratio of te best feasible CAL?

Calculate sharp ratio