Question: 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

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 8%. The T-bill fund is a risk-free asset. The stock fund has an expected return of 12% and a standard deviation of 13%. The bond fund has an expected return of 2% and a standard deviation of 1%. The correlation between the risky fund returns is 7%. What is the investment proportions of stock in the minimum-variance risky portfolio? What is the expected value and standard deviation of the minimum variance risky portfolio?

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