In addition to data above, let us assume that an investor borrows $100$ and invests $200$ in market

portfolio. What is the expected return and standard deviation of this portfolio?

$E(R_p)=-(1**0\mathrm{.}05)+(2**0\mathrm{.}15)$

$=-0,05+0,30$

$=0\mathrm{.}25=25\%$

$s_p=W_{Pm}{s}_m$

$=2**0\mathrm{.}20$

$=0\mathrm{.}40$

This portfolio is a borrowing portfolio.