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 free asset. 2. Draw a CML line using bond fund as risky and T-bill as risk fee asset. 3. The Queens fund manager analyzed expected return of stock and bond fund in 4 different economic conditions. What are the mean and standard deviation under these scenarios? Stock Scenario probability Rate of Return Severe recession Mild recession Normal growth Boom 0.1 0.3 0.4 0.2 -30 -10 15 20 4. what are the benefits to small investors of investing via mutual funds