Assume that the risk‐free rate is 7 percent, the estimated return on the market is 12  percent, and the standard deviation of the market’s expected return is 21 percent. Calculate the expected return and risk (standard deviation) for the following portfolios:

a. 60 percent of investable wealth in riskless assets, 40 percent in the market portfolio

b. 150 percent of investable wealth in the market portfolio

c. 100 percent of investable wealth in the market portfolio.