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You invest $100 in a risky asset with an expected rate of return of 0.14 and a standard deviation of 0.20 and a T-bill with

You invest $100 in a risky asset with an expected rate of return of 0.14 and a standard deviation of 0.20 and a T-bill with a rate of return of 0.06. What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.18?

A.

-50% and 150%

B.

150% and -50%

C.

-25% and 125%

D.

cannot be determined

E.

125% and -25%

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