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**show working** You have $400,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The returnon the risky portfolio is

**show working** You have $400,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The returnon the risky portfolio is 20%. If you wish to earn a 26% return you should ____

a) invest $200,000 in the risk free asset b) invest $150,00 in the risk free asset c) borrow $200,000 c) borrow $150,000

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