Question: Please answer both A1 and A2 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a

Please answer both A1 and A2 A pension fund manager is considering

Please answer both A1 and A2

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: The correlation between the fund returns is 0.10 . Required: a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? a-2. What is the expected value and standard deviation of the minimum-variance portfolio rate of return? Complete this question by entering your answers in the tabs below. What are the investment proportions in the minimum-variance portfolio of the two risky funds? Note: Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places

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