1. Which of the following numbers are closest to the expected return and standard deviation of a portfolio invested half in a risky portfolio and half in Treasury bills? Expected return and standard deviation of risky portfolio are 7% and 20% respectively. The return on Treasury bills is 4%.

   		Expected return is 5.0% and standard deviation is 12.0%
   		Expected return is 5.0% and standard deviation is 10.0%
   		Expected return is 5.5% and standard deviation is 12.0%
   		Expected return is 5.5% and standard deviation is 10.0%