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The risk free rate is 3%. The expected return of the market is 9%. The efficient portfolio has a Sharpe ratio of 0.48. You have

  1. The risk free rate is 3%. The expected return of the market is 9%. The efficient portfolio has a Sharpe ratio of 0.48. You have $100,000 in cash. You are willing to accept volatility as high as 15%. Given that risk tolerance, you want to invest in a portfolio that has the highest possible expected return. Specifically describe the make-up of your portfolio and calculate the expected return of this portfolio.

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