An investment manager has done some calculations for the stock of the Dow chemical with the following results: = -5%, =0.9, and sigma e= 25%. The risk-free rate is 6%. The expected return on the S&P 500 is 14% and its standard deviation is 21%. What is the optimal risky portfolio that is formed by the Dow chemical and the S&P 500? Show your work.

An investment manager has done some calculation for the stock of the Dow chemical with the following results: =-596, = 0.9, and (e)-25%. The-risk free rate is 6%. The expected return on the S&P 500 is 14% and its standard deviation is 21%. What is the optimal risky portfolio that is formed by the Dow chemical and S&P 500