7 Assignment Saved Help Save & Exit Sut Check my wom Problem 7-4 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Expected Return Standard deviation Stock fund (S) 16% 35% Bond fund (8) 12 15 The correlation between the fund returns is 0.13. a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) 0.1848 Portfolio invested in the stock Portfolio invested in the bond / Assignment i Saved Help Save & Exit Sut Check my wo 0.1848 Portfolio invested in the stock Portfolio invested in the bond es a-2. What are the expected value and standard deviation of its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Expected return Standard deviation - Rate of Return 0.1274 0.1456