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The Queens fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term corporate bond fund, and the third is a T-bill that yields a risk-free rate of 5%. Expected return Standard deviation Stock fund 20% 40% Bond fund 10% 25% p=0.15 1. What are the optimal weights for two risky funds(ws', w, ) and its expected return and standard deviation (E(R.). SD(R.)? 2. Suppose that your portfolio must yield an expected return of 13%, what is the proportion invested in the T-bill and each of the two risky funds? 3. If you were to use only the two risky funds and still require an expected retum of 13%, what would be the investment proportions of your portfolio? Which portfolio do you prefer between q2 and q3? Both portfolios have the same expected retur 13%. The investment fund sells Class A share with a front-end load of 4% and 12b-1 fees of 0.5% annually and Class B share with 12b-1 fees of 0.8% annually as well as back-end load fees that start at 4% and by 1% for each full year the investor holds the portfolio. Assume the portfolio rate of return net of operation expenses is 10% annually. 5. If you plan to sell the fund after four years, are Class A or Class B shares the better for you