You currently have $100,000 invested in a portfolio that has an expected return of 12% and a volatility of 8%. Suppose the risk-free rate is 5%, and there is another portfolio that has an expected return of 20% and a volatility of 12%.

a. What portfolio has a higher expected return than your portfolio but with the same volatility?

b. What portfolio has a lower volatility than your portfolio but with the same expected return?

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