Question: how do i solve this guy it seems really hard can someone explain Question 7. Solution needs to be handed in. Your portfolio consists of

how do i solve this guy it seems really hard can

how do i solve this guy it seems really hard can someone explain

Question 7. Solution needs to be handed in. Your portfolio consists of a full investment in just one stock, Twitter. Suppose this stock has an expected return of 22% and volatility of 27%. Suppose further that the tangency portfolio has an expected return of 18% and a volatility of 19%. Also, assume that the risk-free rate is 3%, what is the expected return of the alternative investment that has the highest possible expected return while having the same volatility as your investment? What is the portfolio weight on the tangency portfolio of the alternative investment? (Round your final answers . to three decimal digits) Question 7. Solution needs to be handed in. Your portfolio consists of a full investment in just one stock, Twitter. Suppose this stock has an expected return of 22% and volatility of 27%. Suppose further that the tangency portfolio has an expected return of 18% and a volatility of 19%. Also, assume that the risk-free rate is 3%, what is the expected return of the alternative investment that has the highest possible expected return while having the same volatility as your investment? What is the portfolio weight on the tangency portfolio of the alternative investment? (Round your final answers . to three decimal digits)

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