In general approach, how to calculate the weight of the market portfolio by maximizing Sharpe Ratio manually? (I know we need to do first order condition, but I do not know how to rearrange the function and get the answer.)

Obtaining M in Practice: A General Approach o Recall that to arrive to portfolio M we looked for a line from RF to a point on the efficient frontier with the highest slope e The slope is equal to the Sharpe ratio: so we maximized the Sharpe ratio. In case of two stocks, Sharpe ratio is: RRM) R WAE (RA) (1 - wA)E (RB) RF ACA To figure out the weight of stock A, wA, in the market portfolio M, we have to maximize the Sharpe ratio by setting OSR OwA =0 The answer won't look very pretty, but can come in very handy