Consider the following two investment alternatives: First, a risky portfolio that pays a 15% rate of return with a probability of 30% or a 4% rate of return with a probability of 70%. Second, a Treasury bill (a risk-free asset) that pays 6%. The risk premium on the risky portfolio is 9% 1.3% 3% 2% Suppose you pay $9800 for a $10,000 face-value Treasury bill maturing in 30 months. What is the annualized holding period return for this investment, assuming that you hold the bill until maturity? 2.07% 0.35% 0.81% 1.76% 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. 23%; 36% 15.3%; 27.8% 12%; 22.4% 13.4%; 36%