your complete portfolio is worth a total of $1000 and can be formed out of 2 assets: a risk free asset with a return of 3% and a risky portfolio that has an expected return of 15% and a return volatility of 12%. if you want your complete portfolio to have an expected return greater than 15%, you must invest $1000 in the risk free asset borrow money at the risk-free rate invest $500 in the risk-free asset invest $1000 in the risky portfolio