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This question has two sub-questions and the data of the portfolios is given in the table below. Assume that t-bills generates a return of 4 %. Which of the following risky portfolios is the optimal risky portfolio for a portfolio where you invest between 0% and 100 % of your capital in the risky portfolio? Now assume that you wish to create a portfolio which has an expected return of 13 %. It will turn out that you need to have a leveraged portfolio to achieve this (you will need to borrow money and invest it in a risky portfolio.) If the rate at which you borrow is 9 %, then which risky portfolio is optimal for you to invest in in this scenario? EN 19% 26 % Portfolio A Portfolio B Portfolio C 51 % 12% 7 % Select one: a. Portfolio A is the optimal risky portfolio in the first case and portfolio B is the optimal risky portfolio in the second case. o o c d b. Portfolio A is the optimal risky portfolio in both cases. . It is not possible to achieve an expected return of 13 %. Portfolio B is always the optimal risky portfolio since it has the highest expected return. e. Portfolio C is always the optimal risky portfolio since it has the lowest risk