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A pension fund manager is considering three mutual funds. The first is a stock fund, the...

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 4.4%. The probability distributions of the risky funds are:

   

Expected Return Standard Deviation
   Stock fund (S) 14%         34%         
   Bond fund (B) 5%         28%         

   

The correlation between the fund returns is .0214.

   

What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

   

  Expected return %
  Standard deviation %

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