Return to question Problem 7-4 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: Expected Return Standard deviation Stock fund (S) 35% Bond fund (8) 12 15 16% The correlation between the fund returns is 0.13. a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Answer is complete but not entirely correct. Portfolio invested in the stock Portfolio invested in the bond 0.1848 0.8152 % 3 a-2. What are the expected value and standard deviation of its rate of return? (Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.) Answer is complete but not entirely correct. Rate of Return Expected return 0.1274 Standard deviation 0.1456