1. Investors can form complete portfolios out of two assets: a risk-free asset (T-bill) with a rate of return of 5%; and a risky portfolio with an expected return of 10% and return standard deviation of 30%. Saras coefficient of risk aversion is 3. Saras optimal complete portfolio will have approximately ___________

   		56% in the risky portfolio and 44% in the risk-free asset.
   		19% in the risky portfolio and 81% in the risk-free asset.
   		100% in the risky portfolio.
   		50% in the risky portfolio and 50% in the risk-free asset.