1. You invest $100 in a risky asset and a T-bill. The risky asset has an expected rate of return of 0.12 and a standard deviation of 0.15; and the T-bill has a rate of return of 0.04. With an investment horizon of one year, a portfolio that has an expected outcome of $116 for the $100 initial investment is formed by ___________

   		investing $80 in the risky asset and $20 in the T-bill.
   		investing $100 in the risky asset.
   		borrowing $50 at the T-bill rate and investing the total amount ($150) in the risky asset.
   		investing $50 in the risky asset and $50 in the T-bill.