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An investor borrows $400 at the risk free rate of 5% and invests this $400 together with $500 of his own money in a risky

An investor borrows $400 at the risk free rate of 5% and invests this $400 together with $500 of his own money in a risky asset. The risky asset has an expected return of 15% and a standard deviation of 20%. His portfolio's expected rate of return and standard deviation are __________ and __________ respectively.

12%; 22.4%

23%; 36%

13.4%; 36%

15.3%; 27.8%

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