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The Queens fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term corporate bond fund, and the

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The Queens 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 5%. Expected return Standard deviation Stock fund 20% 40% Bond fund 10% 25% 1. Draw a CAL line using stock fund as risky and T-bill as risk freeassel. 2. Draw a CML line using bond fund as risky and T-bill as risk fee asset

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