Your client is considering investing in two securities: an S&P 500 Index Fund, with a mean return of 10%, and a standard deviation of 20%, and a Corporate Bond Index Fund, with a mean return of 6%, and a standard deviation of 10%. The correlation between the two assets is 0.3. Assume he can invest risk-free at 2%, and borrow risk-free at 4%.

A. Assume that your client wants to combine one of these securities only with the risk-free rate (either a long or short position in the risk free asset). You want to achieve a target standard deviation of 15%. What is the best expected return you could achieve?