Question: I am trying to decide between two different assets allocations in my portfolio. I estimate the first allocation has an expected return of 3% per

I am trying to decide between two different assets allocations in my portfolio. I estimate the first allocation has an expected return of 3% per year, and a standard deviation of 8% per year. The second allocation has expected return of 7% per year and a standard deviation of 16% per year.

Which asset do I choose with risk free rate of 5%?

What percent of my investment should go into each asset if I am comfortable with an SD of 12%?

What is the return on the portfolio?

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