You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a Treasury bill with a rate of return of 6%. A portfolio that has an expected value in 1 year of $1,120 could be formed if you place ________ of your money in the risky portfolio and the rest in the risk-free asset.

Multiple Choice

• 55%

• 40%

• 60%

• 75%