Suppose you have $5,000 to invest in a risk-free asset and the market portfolio.The expected return on the market portfolio is 13.5% with a standard deviation of 18%.The risk-free rate is 4.25%.How much of your funds should be in the risk-free asset if the portfolio has an expected return of 10%?
A)$1,892
B)$2,091
C)$2,909
D)$3,108

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The Answer of Suppose you have $5,000 to invest in a risk-free asset and the market portfolio.The expected return on the market portfolio is 13.5% with a standard deviation of 18%.The risk-free rate is 4.25%.How much of your funds should be in the risk-free asset if the portfolio has an expected return of 10%?
A)$1,892
B)$2,091
C)$2,909
D)$3,108

Suppose You Have $5,000 to Invest in a Risk-Free Asset