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the answer, please Exercise 2 (6 marks) You have RO 100,000 to invest. The risk free rate is 6%. The market portfolio has expected return

the answer, please

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Exercise 2 (6 marks) You have RO 100,000 to invest. The risk free rate is 6%. The market portfolio has expected return of 12% and a risk of 25%. 1) What is the mean and the standard deviation of your investment if you invest RO 60,000 in the market portfolio and RO 40,000 in the risk free rate asset? 2) You borrow RO 100,000 at a risk free rate (5%) and you invest it in a market portfolio. What is the mean and the standard deviation of your new investment? 3) Which portfolio is better? Why

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