QUESTION 32 A pension fund manager is considering three mutual funds. The first is a stock fund, the second is 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 correlation between the stock and bond fund returns is 0.25. The probability distributions of the risky funds are Expected Retum Standard Deviation Stock Fund (s) 15% 32% Bond Fund (B) 9% 23% What is the standard deviation of the portfolio that yields an expected return of 1247 27.50% 21.91% 21.06% 19.70