For questions 3 to 5, use the following information:

You invest $1000 in a portfolio that is composed of a risky asset and a risk-free asset. The risky asset has an expected rate of return of 15% and a standard deviation of 20%. The risk-free asset has a rate of return of 5%.

3. __________ of your portfolio should be invested in the risk-free asset if you want your portfolio to have a standard deviation of 10%.

A) 100%

B) 67%

C) 50%

D) 20%

4. Your portfolio will have an expected return of 12% if you invest __________ in the risky asset, and the remaining in the risk-free asset.

A) $1000

B) $900

C) $700

D) $500

5. The slope of the capital allocation line formed with the risky asset and the risk-free asset is __________.

A) 1.4

B) 0.7

C) 0.5

D) 0.3

Please show work thanks!