Suppose that you own a personal portfolio R xP that has an expected return of 13%

with volatility 24%. You want to maximize your return, but you are reluctant to invest

in higher risk portfolios. Therefore you want to keep your portfolio's volatility at 24%.

One day you decide to explore other options and find that the tangent portfolio R T

offers an expected return of 15% with a volatility of 18%. Assume a risk-free rate of

5%. What is the expected return of portfolio R T , and should you choose portfolio R T

instead of R xP ?