Question 13 Information: a manager is considering three mutual funds: stock fund, long- term government and corporate bond fund, and T-Bill money market fund with yield = 5.5%. The probability distributions of the risky funds are as followings: Expected return Standard Deviation Stock Fund (S) 15% 32% Bond Fund (B) 9% 23% The correlation between the fund return = 0.15 Suppose your portfolio must yield an expected return of 12% and be efficient, i.e. on the best feasible Capital Allocation Line (CAL). Hint: CAL is a line created in a graph of all possible combinations of risky and risk- free assets. Also known as the "reward-to-variability ratio". 1). What's the standard deviation of your portfolio? Show your calculations. 2). What's the proportion invested in the T-Bills fund and each of the two risk funds? Show your calculations