ONLY ANSWER PART B

Suppose that a fund that tracks the S&P has mean E(R_M) = 16% and standard deviation sigma_m = 10%, and suppose that the T-bill rate R_f = 8%. Answer the following questions about efficient portfolios: What is the expected return and standard deviation of a portfolio that has 50% of its wealth in the risk-free asset and 50% in the S&P? What is the expected return and standard deviation of a portfolio that has 125% of its wealth in the S&P, financed by borrowing 25% of its wealth at the risk-free rate