Use the following information to answer items 12 to 16: Risky Asset Expected Return Standard Deviation #1 9% 7% 13% #2 20% 0.5 Correlation coefficient = risk free rate = 3% 15. Consider combinations of risky asset #1 and the risk-free instrument. What is the standard deviation of the portfolio allocated 20% to the risk-free instrument and 80% risky asset #1? A. 1.80% B. 4.00% C. 7.20% D. 14.50% E. 16.00% 16. Assume the investor can borrow at 5%. What is the expected return of the portfolio invested 125% in risky asset #2, financed by a loan (-25%)? A. 7.50% B. 8.00% C. 15.00% D. 15.50% E. 17.50%