Question: PLEASE HELP FAST!! Pensions INC is considering three mutual funds. The first is a stock fund, the second is a long term bond fund and

PLEASE HELP FAST!! Pensions INC 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 7%. The correlation between the risky fund returns is .12 and the characteristics of the funds are as follows:

Expected return Standard deviation

Stock funds (S) 23% 28%

Bond fund (B) 15% 17%

A) What is the weight of the stock fund in the optimal risky portfolio?

B) What is the expected return of the optimal risky porfolio

C) What is the standard deviation of the optimal risky portfolio

Please round decimal answers to 4 places.

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