A financial advisor is considering three mutual funds - a stock fund, a corporate bond fund, and a T-bill money market fund that yields 8%. The expected returns of the stock and bond funds are, Fund Expected Return Standard Deviation Stock Fund (S) 20% 30% Bond Fund (B) 12% 15% The correlation between the stock and bond funds is 0.10. What is the standard deviation of the optimal risky portfolio? Hint: There are formulas for solving the weights to the optimal risky portfolio of 2 risky assets (see i.e., here ) Links to an external site. However, as complicated as the formula for 2 risky stocks is - it becomes more difficult as the number of risky assets increases. A better approach, and one that is used in practice, is using computing power to optimize the Sharpe ratio (recall optimal portfolio is the one with the highest Sharpe ratio). The how-to video in this module, "Capital Allocation Line and the Sharpe Ratio," illustrates how to use Excel's solver function to find the optimal portfolio. The solver function can also be used to optimize portfolios of more than 2 risky assets ( see here Links to an external site.) Answer in percentage form without the % sign.