A stock has an expected return of 16% with a standard deviation of 0.20. Assume you can borrow and lend risk-free at 5%. Assume your portfolio can include this one risky asset and/or the risk-free investment. What is the expected return and standard deviation of a portfolio for an investor with 150% of her wealth in the risky asset and the rest in the risk-free investment? OE[r]= 21.5%, sigma=30% OE[r] 21.5%, sigma=9% OE[r]= 16%, sigma-20% O E[r]= 16%, sigma=30%

A stock has an expected return of 16% with a standard deviation of 0.20 . Assume you can borrow and lend risk-free at 5%. Assume your portfolio can include this one risky asset and/or the risk-free investment. What is the expected return and standard deviation of a portfolio for an investor with 150% of her wealth in the risky asset and the rest in the risk-free investment? E[r]=21.5%,sigma=30%E[r]=21.5%,sigma=9%E[r]=16%,sigma20%E[r]=16%,sigma=30%