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You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 4%. The risky portfolio has an expected return of

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You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 4%. The risky portfolio has an expected return of 10% and a return standard deviation of 20%. If you want the standard deviation of your investment to be 30%, you must invest $100,000 in the risk-free asset borrow $25,000 at the risk-free rate borrow $50,000 at the risk-free rate invest $125,000 in the risk-free asset

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