Question: Problem 7 - 4 ( Algo ) A pension fund manager is considering three mutual funds. The first is a stock fund, the second is

Problem 7-4(Algo)
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 0.09.
Required:
a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds?
a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return?
Problem 7-4(Algo) A pension fund manager is considering three mutual funds.

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