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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 4.8%. The probability distributions of the risky funds are:

  

Expected Return Standard Deviation
   Stock fund (S) 18%         38%         
   Bond fund (B) 9%         32%         

  

The correlation between the fund returns is .1313.

  

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 12.62 ± 1% %
  Standard deviation 26.01 ± 1% %

So 12.62 and 26.01 are the answers for expected return and standard deviation but I am having difficulty understanding how to get those answers

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