Edit question Joseph is considering two risky funds, the S&P 500 index fund and a corporate bond fund, plus Treasury bills (T-Bills). The information of the funds and T-bills are as follows: S&P 500 16% expected return and 20% standard deviation. Corporate Bond Fund 10% expected return and 15% standard deviation. T-bills 6% expected return and 0% standard deviation. The correlation between the S&P 500 index fund and the corporate bond fund is 0.4.

1) Calculate the investment weights in the minimum-variance portfolio of the two risky funds, the expected return and standard deviation of the minimum variance portfolio.