1. A complete portfolio is composed of the risk-free security and the optimal risky portfolio, Q, constructed with the market portfolio and Stock B. Given the risk-free rate of 4%. The market portfolio has an expected return of 10%, and Stock B has an expected return of 14%.

1. Given the expected return of 12% for the optimal risky portfolio Q, what is the weight for the market portfolio? (15points)

2. You would like to form a complete portfolio with an expected return of 18%. What are the overall wights for the risk-free security, market portfolio, and Stock B, respectively? (20points)