Use these data for Questions 1-6.

You manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%.

Question 6. Recently you have been approached by one of your clients demanding he needs more returns beyond 18%. Show how it is possible to achieve such target? You have to also convince him by showing him that this action will rather increase the risk level significantly.

Show ALL steps please