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An investor borrows $200 at the risk free rate of 5% and invests this $200 together with $1000 of his own money in a risky
An investor borrows $200 at the risk free rate of 5% and invests this $200 together with $1000 of his own money in a risky asset. The risky asset has an expected return of 12% and a standard deviation of 30%. His portfolio's expected rate of return and standard deviation are and respectively. 8%; 22.4% 14%; 32% 13.4%; 36% 15.3%; 27.8%
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