Answer questions 7,8 and 9 based upon the following information: the expected annual retum the standard deviation of returns is 307. The expected annual return is the standard deviation of returns 15 40%. The correlation between the two returns is 02. There is also a risk-free asset with an annual return of 3%. You construct a portfolio with $2.000 of your own money and $1,000 borrowed at the risk-free rate. You invest $500 in asset X and $2.500 in asset Y 07. The expected return on your equity (the $2,000 that you put up) is closest to a. b. c. (500 x0.10+ 2500 X 0.15)/200 12.50% 14.17% 19.75% 21.25% Q8. The standard deviation of returns on your equity (the $2,000 that you put up) is closest to a. 219 24% 479 52% 09. The covariance between the returns of assets X and Y is closest to 0.024 0.036 0.048 0060