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Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate

Your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset that has a rate of return of 5% and a risky portfolio with an expected return of 8%. If you want your complete portfolio to have an expected rate of return greater than 8%, you must:

invest less than $1000 in the risky portfolio

invest more than $1000 in the risky portfolio

Invest nothing in the risky portfolio

invest $500 in the risky portfolio

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