Calculate the proportion to get a desired expected return

Reference no: EM1368610

If the market has an expected return of 10%, a standard deviation of 20% and the risk-free rate is 4%, what proportion of your money should be invested in the market if you want an expected return of 16%?

A. 75%
B. 160%
C. 200%
D. It is impossible to get an expected return of 16% in this situation

Reference no: EM1368610

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