You currently have $130,000 invested in a portfolio that has an expected return of 12% and a volatility of 8 %. Suppose therisk-free rate is 4%, and there is another portfolio has an expected return of 23 % and a volatility of 11 %.

a.What portfolio has a higher expected return than your portfolio but with the samevolatility?

b. What portfolio has a lower volatility than your portfolio but with the same expectedreturn?