1. Suppose you have some money invested in corporate bonds. This portfolios expected return is 10%, and the standard deviation of returns is 11%. Your financial adviser recommends moving that money into an index fund that closely tracks the S&P 500 index. The index has an expected return of 12.5%, and its standard deviation is 15%. Can you create a combination of the index fund and Treasury bills, that will increase your expected rate of return without changing the risk of the portfolio? Assume Treasury bills yield 4%.

   		None of these is correct
   		70.6% invested in the index fund and the remainder in Treasury bills
   		79.6% invested in the index fund and the remainder in Treasury bills
   		83.5% invested in the index fund and the remainder in Treasury bills
   		76.1% invested in the index fund and the remainder in Treasury bills