I need help with step by step solutions on the following problem:

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 7%. The probability distribution of the risky funds is as follows:

	Expected Return		Standard Deviation
Stock fund (S)	23	%	28	%
Bond fund (B)	15		17

The correlation between the fund returns is 0.12.

You require that your portfolio yield an expected return of 13%, and that it be efficient, on the best feasible CAL.

a.	What is the standard deviation of your portfolio? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Standard deviation

%

b.	What is the proportion invested in the T-bill fund and each of the two risky funds? (Round your answers to 2 decimal places.Omit the "%" sign in your response.)

	Proportion Invested
T-bill fund		%
Stocks		%
Bonds		%