You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fund yields a rate of 3%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 13% and a standard deviation of 44%. The bond fund has an expected return of 5% and a standard deviation of 1%. The correlation between the risky fund returns is 8%. What is the expected return and standard deviation of a risky portfolio that consists of 40%% in stock and the rest in bond?

a. 8.2000%; 17.6581%

b. 7.5151%; 16.1582%

c. none of the options

d. 6.1570%; 18.1111%

You are given two risky assets. The first is a stock fund and the second is a bond fund. A T-bill fund yields a rate of 3%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 13% and a standard deviation of 44%. The bond fund has an expected return of 5% and a standard deviation of 1%. The correlation between the risky fund returns is 8%. What is the expected return and standard deviation of a risky portfolio that consists of 40%% in stock and the rest in bond?

a. 13.77%; 8.12%

b. 23.71%; 4.41%

c. none of the options

d. 26.32%; 6.21%