you are considering three mutual funds. The first is a stock fund, the second is a bond fund. and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows

The correlation between the fund returns is 0.10

1. What are the investment proportions in the optimal risky portfolio of the two risky funds?
2. What is the expected value of retum?
3. What is the standard deviation of its rate of return?

	expected return	standard deviasion
stock fund (S)	20%	30%
bond fund (B)	12%	15%