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A pension fund manager is considering three mutual funds. The first is a stock fund,...

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A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-blll money market fund that yields a rate of 5.5%. The probability distribution of the risky funds is as follows: Expected Return 158 94 Standard Daviation 328 Stock fund (8) Band fund (3) 234 The correlation between the fund returns is 0.15. Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio. (Do not round intermediate calculations and round your final answers to 2 decimal places.) % Portfolio invested in the stock Portfolio invested in the bond Expected return Standard deviation %

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