Q3, 12

PLEASE DO NOT USE EXCEL.

Please provides steps either with formula, or financial calculator.

Greg has $10,000 to invest in a risk-free asset and in the market portfolio. The risk-free rate is 4.8%. The market portfolio has an expected return of 13.6% with a standard deviation of 15%. What are the expected return and standard deviation for a portfolio with 30% of the funds invested in the risk-free asset? a. Expected return = 10.50%; standard deviation = 10.96% b. Expected return = 10.96%; standard deviation = 10.50% C. Expected return = 4.50%; standard deviation = 7.44% d. Expected return = 7.44%; standard deviation = 4.50%