Testbank, Question 14 What are the expected return and standard deviation for a portfolio that has $2,000 invested in a risk-free asset with 5.25 percent rate of return, and $8,000 invested in a risky asset with a 21 percent rate of return and a 35 percent standard deviation? a) Expected return = 17.85%; standard deviation = 28.00% b) Expected return = 28.00%; standard deviation = 17.85% c) Expected return = 7.00%; standard deviation = 8.40% d) Expected return = 8.40%; standard deviation = 7.00% Expected return = 17.85%; standard deviation = 28.00% Expected return = 28.00%; standard deviation = 17.85% Expected return = 7.00%; standard deviation = 8.40% Expected return = 8.40%; standard deviation = 7.00%