Assume that the market has an expected return of 12% and volatility (standard deviation) of 20%. Company X has a 50% volatility (standard deviation). The correlation between the market and Company X is 90%. The risk-free rate is 3%. What would be the expected return on Company X?

3- Refer to Question above. Suppose that you want to take only 15% risk (standard deviation) on your investment portfolio. What would be the return you can get if you invest in only Company X and the risk-free asset?