Question: QUESTION 3 1.25 points Save A Problem 6.2(a) A pension fund manager is considering three mutual funds. The first is a stock fund, the second

QUESTION 3 1.25 points Save A Problem 6.2(a) A pension fund manager is considering three mutual funds. The first is a stock fund, the second 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 probability distributions of the risky funds are: Expected Return Standard deviation Stock fund (5) 154 Bond fund (8) 234 12 The correlation between the fund returns is 0.15. If the portfolio has to yield an expected return of 12%, what proportion must be invested in stocks? (Enter your answer in percentage points. Round your answer to 2 decimal places.)

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