lets assume, you want to construct a portfolio of risky and riskfree assets. You wish to generate a 7% return for your complete portfolio E(rc). Using the Capital Allocation Line (CAL) equation E(rC ) = rf + y E(rP ) rf, The risky asset has an expected return of 8.07% and the risk free asset has an expected return of -23.05%.

a. Calculate the portion that you need to invest in risky assets and (b). in risk-free assets.

c. Calculate the standard deviation of the portfolio.