40. Consider the following two investment altemobabiliy alculate the Piobability of returm wntalematives. First, a risky portrolio Calculate the probability of 60%, and second, a T-bill that pays that t pays a 12 perc cnt rate of or a 4 percent a probability of 40% or a the difference between the and the risk-free T-bill return. expected return on the risky a. b. c. d. e. 8.8% 5.8% 7.2% 4.296 3.2% 41. In the mean-standard deviation graph, the line that connects the optimal risky portfolio, P, is called a. the capital allocation line b. the indifference curve c. the investor's utility line d. the security market line 42. You have $500,000 available to invest. The risk-free rate as well as your %. If you wish to borrowing rate is 8%. The return on the risky portfolio is 16 earn a 22% return, you should a. invest $125,000 in the risk-free asset b. invest $375,000 in the risk-free asset borrow $125,000 at the risk-free rate d borrow $375,000 at the risk-free rate