You have $500 available to invest. The risk-free rate is 6%. The return on the risky portfolio is 10%. If you wish to earn a 12% return, you should __________.

Group of answer choices

borrow $125 at risk free rate to invest in risky portfolio

invest $250 in the risk-free asset

borrow $375 at risk free rate to invest in risky portfolio

borrow $250 at risk free rate to invest in risky portfolio

invest $375 in the risk-free asset