Question 2 (8 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. A portfolio that has an expected value in 1 year of $1,100 could be formed if you O 1) place 60% of your money in the risky portfolio and the rest in the risk-free asset place 75% of your money in the risky portfolio and the rest in the risk-free 2) O asset place 55% of your money in the risky portfolio and the rest in the risk-free O 3) asset place 40% of your money in the risky portfolio and the rest in the risk-free 4) asset O

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. A portfolio that has an expected value in 1 year of $1,100 could be formed if you 1) place 60% of your money in the risky portfolio and the rest in the risk-free asset 2) place 75% of your money in the risky portfolio and the rest in the risk-free asset 3) place 55% of your money in the risky portfolio and the rest in the risk-free asset 4) place 40% of your money in the risky portfolio and the rest in the risk-free asset