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Suppose you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 18%. The risk-free rate is 4%

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Suppose you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 18%. The risk-free rate is 4% at which investors can borrow or lend. One of your clients has $50,000 in her account to invest. She decides to borrow $20,000 at 4% and invests a total of $70,000 in your risky portfolio. What is the expected rate of return and standard deviation for your client's investment? 1. 15.2% and 25.2% 2. 15.2% and 18.0% 3. 16.8% and 25.2% 4. 18.0% and 16.8% 5. 18.0% and 25.2%

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