Question

part a) Suppose the risk-free asset has a return of 0.05, and the market portfolio has expected return of 0.15 and standard deviation 0.18. What is the minimum standard deviation you can achieve if you desire an expected return of 10%?

part b) Suppose the risk-free asset has a return of 0.05, and the market portfolio has expected return 0.15 and standard deviation 0.18. Is it possible for you to achieve an expected return of 20% and a standard deviation of 20%? Why, or why not?