2) (5 pts) Assume you have constructed an optimal risky portfolio that consists of the following asset class The risky portfolio has an expected return of990 and a standard deviation of 16%. x-tecl retur Weights 45% 1 20% 35% Large Stocks Mid-Cap Stocks Bonds There are also risk-free (cash/money market) investments available that offer a 2% return. Your client has $100,000 to invest and is somewhat more risk adverse wanting to reduce their overall volatility (standard deviation) to 12.0% while still using the optimal allocation mix above. How will th $100,000 be allocated in order to achieve a standard deviation of 12.0% on the complete portfolio and is the expected return of your position. ex Pred return: 2 st= 12% Bonds Large Stocks $ Mid-Cap Stocks $ Expected return of your position is equal to Cash-$