3. (fill in the blanks) The return on the risky portfolio is 15%. The risk-free rate, as well as the inves borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 20%. If the standard deviation on the complete portfolio is 25%, the expected return on the complete portfolio is _ SOLUTION: 2. (fill in the blanks) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. A portfolio that has an expected value in 1 year of $1,100 could be formed if you OLUTION: Let proportion in risky assets be y 11