You manage a risky portfolio with expected rate of return 18% and a volatility of 28%. The US T-bill rate (aka risk free rate) of return is 2%.

Your client decides to invest 70% into your portfolio and 30% into US T-bills via a money market fund.

What is your clients' portfolio expected return(rp) and risk(vol)?

A. rp =15.2% vol =14%

B rp =13.2% vol =3.8%

C. rp = 18.% vol =28%

D. rp =15% vol =3.8%