With reference to Question 3 above, you are feeling lucky and decide to take on a riskier portfolio. In particular, in addition to your $5,000 gift, you are able to borrow another $1,000 at the risk-free rate of 10%. You decide to invest this total of $6,000 in a portfolio containing a mix of Hilda’s Hybrids and Hilda’s Hubby.

4.a. In what proportion will you invest your $6,000, if your objective is to create the

“best combination” of these risky assets?

4.b. What will be the expected return and the expected risk for this more daring portfolio?