A risk-free asset has a return of 5%. A risky portfolio has an expected return of 10% and a standard deviation of return of 20%. If you want to form a complete portfolio from these two assets, and you want this portfolio to have an expected return equal to 10%, what must you do? Assume that all borrowing and lending can be done at the risk free rate.

		borrow at the risk free rate.
		invest 100% of your portfolio in the risky portfolio.
		lend at the risk free rate.
		short sell the risky portfolio.