2. A pension fund manager is considering two mutual funds. The first is a stock fund and the second is a bond fund. The correlation between the fund returns is 0.1. The expected returns and the standard deviations are as follows: Expected return SD Stock fund 20% Bond fund 12% 30% 15% a. What are the investment proportions in the minimum-variance portfolio of the two funds? b. Calculate the expected return and standard deviation of the minimum-variance portfolio. d. Draw the investment opportunity set of the two risky funds and mark the minimum-variance portfolio (based on parts b and c). e. If you were to use only the two risky funds, and still require an expected return of 14%. Calculate the investment proportions of your portfolio and the standard deviation of the portfolio (Hint: use the portfolio's expected return to calculate the investment weights of each fund. Remember that wBonds = 1 - WStocks . Then use the weights to calculate the standard deviation of the portfolio)