use excel to slove part b and c

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a longterm government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5.5%. The probability distribution of the risky funds is as follows: b) What are the proportions of each asset and for the expected retum and standard deviation of the optimal risky portfolio? Answer: Proportion in Stock Fund is , proportion in Bond Fund is Expected Return of the optimal portiolio is and standard devilition is c) What would be the investment proportions and the standard deviation of the portfolio which yields an expected return of 12% if you were limited to only the stock and bond funds? Answer: Proportion in Stock Fund is ,proportion in Bond Fund is Expected Return is and standard deviation is d) What would be the investment proportions and the standard deviation of the portfolio which yields an expected return of 12% if you could invest in all three funds? Answer: Proportion in Stock Fund is , proportion in Bond Fund is Expected Return is and standard deviation is A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a longterm govermment and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 5.5%. The probability distribution of the risky funds is as follows: The correlation between the fund retums is 0.15 . a) What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? WA=A2+B22ABPABB2ABPAB=0.322+0.232(20.320.230.15)0.232(0.320.230.5)=0.1024+0.0529(20.01104)0.05290.01104=0.314217WB=1WA=0.685783=(WA2+A2)+(Wj2+i2)E=(rAWA)+(rBWB)=(0.3k+21)2a.322)+(6.16+8322.=19.9366%=(15%0.314217)+(9%0.685783)=10.8853% Answer. Expected retum is 0.89% and standard deviation is 19.94%