please solve a b c d

The fund manager who runs the pension fund is considering investing in the following three mutual funds. These are stock funds, bond funds that operate long-term government bonds and corporate bonds, and currency market funds that operate as U.S. Treasuries (T-bills), respectively. Monetary market funds pay a fixed return of 5.5%, while the expected return and standard deviation of stock funds and bond funds are as follows:

	Expected Return	Standard Deviation
Stock Fund(S)	15%	32%
Bond Fund(B)	9	23

The correlation coefficient between the two risk fund returns is 0.15.

(a) Calculate the set of investment opportunities for the two risk funds and graph the set of investment opportunities. Calculate the set of investment opportunities by increasing the share of investment in a stock fund by 0% to 20% and changing it until it reaches 100%.

(b) Calculate the share of equity funds and bond funds in the optimal risk portfolio. What is the expected return and standard deviation of the optimal risk portfolio?

(c) What is the most optimal CAL's Sharpe ratio among achievable asset allocation lines (CALs)?

(d) Now let's assume that you want your completed portfolio to have an expected return of 12% and you want it to be efficient. (i.e. you want it to be on the optimal achievable capital allocation line (CAL)) What is the standard deviation of your completion portfolio? At what rate should you invest in currency market funds, stock funds, and bond funds, respectively?