Assume that the riskfree rate is 5 percent and that you can invest in the market portfolio which has an expected return of 15 percent and a standard deviation of return of 20 percent. You have $5,000 available for investment and you want to form a portfolio with an expected return of 20 percent. In this case, you:

a) Need to borrow $2,500 at the riskfree rate and invest $7,500 in the market portfolio.

b) Need to borrow $7,500 at the riskfree rate and invest $12,500 in the market portfolio.

c) Need to lend $2,500 at the riskfree rate and invest $2,500 in the market portfolio.

d) Cannot achieve an expected return of 20% because the expected return of the market portfolio is only 15%.