Use the equilibrium model of cash flow allocation between a well-diversified investor and an under-diversified entrepreneur. There are no agency issues and no information asymmetry. The risk-free rate is 3%, the market rate is 9%, the market standard deviation is 18%, the correlation between the venture and the market is 0.21, the harvest date is in 6 years, the investment in the venture is $10 million, the expected project cash flow is $75 million, the project standard deviation of cash flows is $23 million, and the outside investment is $9 million. The entrepreneurs wealth is $2.5 million. The outside investor wants to achieve an NPV of $5 million. In this case, the actual percent of ownership of the outside investor has

Choice 1 of 4:to be 73.14%

Choice 2 of 4:to be smaller than 15.42%

Choice 3 of 4:to be greater than 15.42%

Choice 4 of 4:to be 90%