You have following information:

Risk free return (r_f) = 12%

Stock market index return (R_m) = 15%

Standard deviation of market (_m) = 4%

You would like to construct an efficient portfolio with 14% return. What proportion of your investment should be invested for government bonds and market portfolio? What is the standard deviation of your portfolio?

Invest into Govt bonds: 66.6%, 33.33%, 76.23%, 23.67%

Invest into market portfolio: 66.6%, 33.33%, 76.23%, 23.67%

Standard deviation of the portfolio is: 2.67%, 2.33%, 2%, 2.55%