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:

What is the correlation between the portfolio in b) and the market portfolio?

B. (You have $100,000 to invest. How should you allocate your wealth among risk free assets and the market portfolio in order to have a 25% expected return?

So lets say A is allocation of wealth among risk free asset and (100000 - A) allocation of wealth among market portfolio

Solve for A borrowing money A*10%+(100,000-A)*20%%*100000 = 50,000 to be borrowed at 10%

100,000 + 50,000 = 150,000 to be invested

In order to have a market portfolio to have a 25% expected return you will need to invest 150,000 into the market portfolio.)