1. (4 Points) Suppose that you can invest in a risky portfolio P with an expected return of 10% and a standard deviation of 20%, borrow money at the rate of 5% and invest money in a risk-free asset at 3%. (a) Construct a portfolio with an expected return of 8%. (b) What is the standard deviation of the portfolio you constructed in part (a)? (c) Construct a portfolio with a standard deviation of 24% and compute its expected return. 1. (4 Points) Suppose that you can invest in a risky portfolio P with an expected return of 10% and a standard deviation of 20%, borrow money at the rate of 5% and invest money in a risk-free asset at 3%. (a) Construct a portfolio with an expected return of 8%. (b) What is the standard deviation of the portfolio you constructed in part (a)? (c) Construct a portfolio with a standard deviation of 24% and compute its expected return