Consider two types of assets: market portfolio (M) and stock A.

The expected return is 8% and standard deviation of the market portfolio is 15%. The risk-free rate is 2%. The standard deviation of market portfolio returns is 15%. The standard deviation of stock A is 30%, and the beta coefficient is 1.

Show how your client can "do better" if she wants to keep her risk exposure to 30% as well.

Specifically,

I) how much expected return can she earn?

Ii) what is her portfolio?