Please don't solve it by EXCEL.

1. A pension fund manager is considering three mutual funds. The first is 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 sure rate of 5.5%. The correlation between the stock and bond funds is 0.15. The probability distributions of the risky fund are (20pts) Stock fund (S) Bond fund (B) Expected return 15% 9% S.D. 32% 23% 1) Tabulate and draw the investment opportunity set of the two risky funds. (10pts) S.D WB 1-Ws 1.0 0.8 0.6 0.5 0.4 0.2 0.0 Return Ws 0.0 0.2 0.4 0.5 0.6 0.8 1.0 2) Calculate the expected return and S.D for the minimum variance portfolio. Show the minimum variance portfolio in the Graph. (10pts)