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 equal to 8%, you must: a) Invest $1000 in the risk free asset b) Invest $500 in the risk free asset c) Invest $1000 in the risky portfolio d) Invest more than $1000 in the risky portfolio.
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