Your investment portfolio consists solely of $10,000,$ invested in McRonald$$s stock. Suppose

the risk$-$free rate is $4$ percent. McRonald$$s stock has an expected return of $9$ percent and a

standard deviation of $27$ percent. The market portfolio has an expected return of $10$ percent and

a standard deviation of $16$ percent.

a$.$ Under the CAPM assumptions, which portfolio has the lowest possible SD while having

the same expected return as McRonald$$s stock?

b$.$ Which portfolio has the highest possible expected return while having the same SD as

McRonald$$s stock?