QUESTION 15

1. 25. You invest $100 in a risky asset with an expected rate of return of 0.10 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. A portfolio that has an expected outcome of $115 is formed by

   		A. investing $100 in the risky asset.
   		B. investing $80 in the risky asset and $20 in the risk-free asset.
   		C. borrowing $100 at the risk-free rate and investing the total amount ($200) in the risky asset.
   		D. borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset.
   		E. Such a portfolio cannot be formed.