The Bronx fund manager is considering three mutual funds. The first is a stock fund, the second is a long- term corporate bond fund, and the third is a T-bill that yields a risk-free rate of 4%. Expected return Standard deviation Stock fund 14% 30% Bond fund 6% 5% p= -0.25 1. Draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. What expected return and standard deviation does your graph show for the minimum variance portfolio? 2. What are the optimal weights for two risky funds, and under that optimal weight, what are the expected return, and the standard deviation? 3. Suppose that your portfolio must yield an expected return of 10%, what are the proportions of your fund invested in the T-bill and each of the two risky funds? The Bronx fund manager is considering three mutual funds. The first is a stock fund, the second is a long- term corporate bond fund, and the third is a T-bill that yields a risk-free rate of 4%. Expected return Standard deviation Stock fund 14% 30% Bond fund 6% 5% p= -0.25 1. Draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. What expected return and standard deviation does your graph show for the minimum variance portfolio? 2. What are the optimal weights for two risky funds, and under that optimal weight, what are the expected return, and the standard deviation? 3. Suppose that your portfolio must yield an expected return of 10%, what are the proportions of your fund invested in the T-bill and each of the two risky funds