3. Your investment portfolio consists of $15,000 invested in only one stockAmazon. Suppose the risk-free rate is 5%, Amazon stock has an expected return of 16% and a volatility of 40%, and the market portfolio has an expected return of 10% and a volatility of 18%.

a. What alternative investment (that is, what capital market line portfolio) has the lowest possible volatility while having the same expected return as Amazon? What is the volatility of this investment? (15 points)

b. What investment (that is, what capital market line portfolio) has the highest possible expected return while having the same volatility as Amazon? What is the expected return of this investment? (15 points)