You invest $10,000 in a complete portfolio, which is composed of a risky asset with expected rate of return of 15% and standard deviation of 20%, and a risk-free asset with a rate of return of 5%. 1. How much money should you invest in the risky asset if you want your complete portfolio to have an expected return of 12%? 2. How much money should you invest in the risk asset if you want your complete portfolio to have an expected value of $12,000?

Explain the meaning of the result.