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you have 500,000 available to invest The risk-free rate as well as your borrowing rate is 8%. The return on the optimal risky portfolio is

you have 500,000 available to invest The risk-free rate as well as your borrowing rate is 8%. The return on the optimal risky portfolio is 16%. if you wish to earn 22% return, you a) invest 125,000 in the risk-free asset

b) invest 375,000 in the risk-free asset c) invest 875,000 in the optimal risky portfolio by borrowing 375,000

d) invest 625.000 in he optimal risky portfolio by borrowing 125,000

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