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You have $100,000 available to invest. The risk-free rate, as well as your borrowing rate, is 5%. 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 5%. The risky portfolio has an expected return of 15% and a return standard deviation of 25%. If you want the standard deviation of your investment to be 35%, you must invest $60,000 in the risk-free asset borrow $50,000 at the risk-free rate invest $20,000 in the risk-free asset borrow $40,000 at the risk-free rate

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