Question: Assume Rf = 0.05 and two stocks A, B with RA = 0.14, RB = 0.10. Suppose the point of tangency to the efficient frontier

 Assume Rf = 0.05 and two stocks A, B with RA

Assume Rf = 0.05 and two stocks A, B with RA = 0.14, RB = 0.10. Suppose the point of tangency to the efficient frontier (the one constructed using the two stocks), consists of 60%A and 40%B. Suppose you want to construct a portfolio by combining the risk free asset and portfolio G to obtain expected return 11%. Determine the percentages of your investment in the risk free asset and in portfolio G. Consider the data from question (2). Suppose you want to build a portfolio with expected return 0.10 by combining the risk free asset and portfolio G. What is the composition of this portfolio in the risk free asset, in A, and in B

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