You are considering two investment choices: a. 1 year CD that pays 2% for sure; b. investing in SP500 with 8% expected and 20% stdev. Q5a. If you put 50% in each of the two, what in the mean and stdev for your portfolio return? Q5b. You want to maximize your expected return for the portfolio, as long as the stdev risk is no more than 10% per year. What is the allocation to CD and to stocks? What is the mean return of the portfolio? Q5c. You want to reach 17% mean return per year as a minimum. What is the least amount you need to allocate to stocks? What is the stdev of the portfolio?