Given that the risk-free rate is 10%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions:

1. Suppose that the market pays either 40% or 0% each with probability one half. You alter your portfolio to a more risky level by borrowing $50,000 and investing it and your own $100,000 in M. Give the probability distribution of your wealth (in dollars) next period. Please explain and show formulas using excel.