You Invest $10 000 in a Complete Portfolio

Multiple Choice

You invest $10 000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 21% and a Treasury bond with a rate of return of 5%. How much money should be invested in the risky asset to form a portfolio with an expected return of 11%?

A) $6 000
B) $4 000
C) $7 000
D) $3 000