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

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Finance

A pension fund manager is considering three mutual funds. Thefirst is a stock fund, the second is a long-term government andcorporate bond fund, and the third is a T-bill money market fundthat yields a sure rate of 4.5%. The probability distributions ofthe risky funds are: Expected Return Standard Deviation Stock fund(S) 15% 35% Bond fund (B) 6% 29% The correlation between the fundreturns is 0.0517. What is the expected return and standarddeviation for the minimum-variance portfolio of the two riskyfunds? (Do not round intermediate calculations. Round your answersto 2 decimal places.)

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