There are three assets available to investors: 1) a stock fund with an expected return of 15% and a return standard deviation of 20%; 2) a bond fund with an expected return of 8% and a return standard deviation of 10%; and 3) a risk-free asset with a return of 3%. The correlation between the stock fund's return and the bond fund's return is -0.1. Mary is a risk-averse investor. Answer the following questions: a. If Mary invests 2% of her portfolio wealth in the stock fund and 98% in the bond fund (She invests nothing in the risk-free asset), what is the expected return and standard deviation of her portfolio? [1 pts] b. If Mary invests 100% of her portfolio wealth in the bond fund, what is the expected return and standard deviation of her portfolio? [0.5 pts] c. Which portfolio between a) and b) would Mary prefer? Explain your answer. [0.5 pt] d. Suppose Mary has to pick only one of the funds (the stock fund or the bond fund) to hold with the risk-free asset, which fund will she pick? Explain your answer. [2 pts] There are three assets available to investors: 1) a stock fund with an expected return of 15% and a return standard deviation of 20%; 2) a bond fund with an expected return of 8% and a return standard deviation of 10%; and 3) a risk-free asset with a return of 3%. The correlation between the stock fund's return and the bond fund's return is -0.1. Mary is a risk-averse investor. Answer the following questions: a. If Mary invests 2% of her portfolio wealth in the stock fund and 98% in the bond fund (She invests nothing in the risk-free asset), what is the expected return and standard deviation of her portfolio? [1 pts] b. If Mary invests 100% of her portfolio wealth in the bond fund, what is the expected return and standard deviation of her portfolio? [0.5 pts] c. Which portfolio between a) and b) would Mary prefer? Explain your answer. [0.5 pt] d. Suppose Mary has to pick only one of the funds (the stock fund or the bond fund) to hold with the risk-free asset, which fund will she pick? Explain your answer. [2 pts]