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Your investment portfolio consists of $11,000 invested in only one stock-Amazon Suppose the risk free rate is 4%, Amazon stock has an expected retum of

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Your investment portfolio consists of $11,000 invested in only one stock-Amazon Suppose the risk free rate is 4%, Amazon stock has an expected retum of 11% and a volatility of 3%, and the market portal has an expected retum of 10% and a volatility of 19% Under the CAPM assumptions, a. What alternative investment has the lowest possible volatility while having the same expected return as Amazon? What is the volatility of this investment? b. What investment has the highest possible expected retum while having the same volatyas Amazon? What is the expected return of this investment? Hint Make sure to round all intermediate calculations to at least five decimal places a. What malive weatment has the lowest possibile volativty while having the same expected returns Amazon? To create an ahernative rolment that has the lowest possible voluilty while having the same expected motum an Amaron, we use the following rear Sell worth of Amazon sock (Round to the newest dolor Borrow . at the risk tree role. (Round to the nearest dolar) worth of the market portfolio Round to the nearest dotar) Buy worth of the risk-free investment (Round to the nearest dollar) Your investment portfolio consists of $11,000 invested in only one stock-Amazon Suppose the risk free rate is 4%, Amazon stock has an expected retum of 11% and a volatility of 3%, and the market portal has an expected retum of 10% and a volatility of 19% Under the CAPM assumptions, a. What alternative investment has the lowest possible volatility while having the same expected return as Amazon? What is the volatility of this investment? b. What investment has the highest possible expected retum while having the same volatyas Amazon? What is the expected return of this investment? Hint Make sure to round all intermediate calculations to at least five decimal places a. What malive weatment has the lowest possibile volativty while having the same expected returns Amazon? To create an ahernative rolment that has the lowest possible voluilty while having the same expected motum an Amaron, we use the following rear Sell worth of Amazon sock (Round to the newest dolor Borrow . at the risk tree role. (Round to the nearest dolar) worth of the market portfolio Round to the nearest dotar) Buy worth of the risk-free investment (Round to the nearest dollar)

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