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Blitz has $300,000 to invest and has the following two investment options: (1) investing or borrowing at the riskless rate of 3%, and (2) a

Blitz has $300,000 to invest and has the following two investment options: (1) investing or borrowing at the riskless rate of 3%, and (2) a stock portfolio that has an expected return of 9%/year and a standard deviation of 15% per year. Blitz decides to borrow $180,000 at the riskless rate and invest a total of $480,000 (the original $300,000 and the $180,000 in borrowed funds) in the stock portfolio. Calculate the expected return and standard deviation of Blitzs final investment portfolio.

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