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8) You have $100,000 available to invest. The risk free rate is 7%. The return on the risky portfolio is 14%. If you wish to
8) You have $100,000 available to invest. The risk free rate is 7%. The return on the risky portfolio is 14%. If you wish to earn an expected return of 12.6%, you should- -. a) invest $80,000 in the risk-free asset and $20,000 in the risky portfolio b) invest $20,000 in the risk-free asset and $80,000 in the risky portfolio c) borrow $80,000 at the risk-free rate and invest $180,000 in the risky portfolio. d) borrow $20,000 at the risk-free rate and invest $120,000 in the risky portfolico
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