Market information: The riskless interest rate is 2% per year; the expected return on the market is 8% per year; the market has an annual standard deviation of return of 20%.Your investment portfolio information: $100,000 all invested in just one stockApple. Apple has an expected return of 10% per year, and a standard deviation of return of 40%.

It is possible to:

a) Construct a new portfolio made up of Apple stock and a risk-free security that will have the same expected return as your current portfolio that is only invested in Apple, but with a lower volatility. Construct this portfolio, showing your calculations.

It is possible to:

b) Construct a new portfolio made up of Apple stock and a risk-free security that will have the same volatility (standard deviation) as your current portfolio that is only invested in Apple, but with a higher expected return. Construct this portfolio, showing your calculations.