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You want to invest 100,000 and wanttomaximize your expectedreturn.The marketportfolio hasanexpected return of 7% and a standard deviation of 12%.And the risk-free treasuries rate is

You want to invest 100,000 and wanttomaximize your expectedreturn.The marketportfolio hasanexpected return of 7% and a standard deviation of 12%.And the risk-free treasuries rate is 5%.

To maximize return while accepting a standard deviation of 12% on your portfolio, consider combining risk-free treasuries with portfolio YD. What is the expected return of your new portfolio?

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