Interest on a margin loan is currently 4%, while term deposits at your bank pay 1%. You have $10,000 in cash to invest in an ETF tracking the ASX 200, which you believe has an expected return of 10% and a standard deviation of 20%.

If you want to construct a portfolio with an expected future value of $11,600, you will need to

a) Borrow $10,000 and invest the total cash ($20,000) in the ETF

b) Borrow $1,600 and invest the total cash ($11,600) in the ETF

c) Borrow $6,667 and invest the total cash ($16,667) in the ETF

d) Borrow $2,667 and invest the total cash ($12,667) in the ETF

e) Invest $8,400 in the ETF and deposit $1,600 at the bank