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QUESTION 2 You are considering two mutual funds. The first is a stock fund and...

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QUESTION 2 You are considering two mutual funds. The first is a stock fund and the second is a long-term government and corporate bond fund. The stock fund has an expected return of 20% and a variance of 0.36. The bond fund has an expected return of 8% and a variance of 0.16. The correlation coefficient between the stock and bond funds is 0.3. If you want to create a minimum-variance portfolio that consists of these two funds, what is the percentage that you should invest in the stock fund? A. 0.766 B. 0.234 C. 0.375 O D.0.625

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