You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fund yields a rate of 8%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 10% and a standard deviation of 15%. The bond fund has an expected return of 5% and a standard deviation of 1%. The correlation between the risky fund returns is 5%. What is the investment proportions of stock in the minimum-variance risky portfolio? What is the expected value and standard deviation of the minimum variance risky portfolio?

a. None of the options

b. 0.1114%; 5.0056%; 0.9999%

c. 3.1875%; 6.1512%; 1.8872%

d. 1.7871%; 7.1541%; 2.0001%

You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fund yields a rate of 5%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 13% and a standard deviation of 33%. The bond fund has an expected return of 15% and a standard deviation of 5%. The correlation between the risky fund returns is 27%. If an investor requires the complete portfolio to return 12%, what is the portfolio weight of the optimal risky portfolio in the complete portfolio? What is the weight of stock in the complete portfolio? What is the weight of bond in the complete portfolio?

a. 55.2331%; 10.1425%; 33.3290%

b. 69.6675%; -1.6624%; 71.3300%

c. 15.2332%; 8.5724%; 87.5515%

d. None of the options are correct