You have $10,000 and you are thinking about how to invest it. You will choose between the risk-free Treasury-bill and a mutual fund. The expected return for the mutual fund is 14% and its standard deviation is 20%. The risk-free rate is 5%. If you have to borrow from the bank, your borrowing rate is 7%. Assume your risk aversion coefficient is 2. How much should you invest in this mutual fund?

	A.	$11,000
	B.	$10,000
	C.	$11,250
	D.	cannot be determined
	E.	$8750