Question: can you please provide Excel working too if you use it? Thank you! a) Suppose you have invested all your capital ($30,000) in a portfolio

 can you please provide Excel working too if you use it?

can you please provide Excel working too if you use it? Thank you!

a) Suppose you have invested all your capital ($30,000) in a portfolio of one stock only, Wal-Mart. Wal-Mart has an expected return of 13% and a volatility of 30%. You know that the market portfolio has an expected return of 9% and a volatility of 15%. Assume that the risk-free interest rate is 3%. Under the CAPM assumptions: i. What alternative investment has the lowest possible volatility while having the same expected return as Wal-Mart? What is the volatility of this new portfolio? (8 marks) ii. What investment has the highest possible expected return given that you want to maintain the same volatility as Wal-Mart? What is the expected return of this new portfolio? (8 marks)

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