You currently have $100,000 invested in a portfolio that has an expected return of 12%...
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You currently have $100,000 invested in a portfolio that has an expected return of 12% and a volatility of 8%. Suppose the risk-free rate is 5%, and there is another portfolio that has an expected return of 20% and a volatility of 12%. For this question, you need to specify the dollar amount that you invest in the new portfolios in (i) and (ii)
(i)How do you construct a new portfolio that has a higher expected return than your current portfolio but with the same volatility?
(ii)How do you construct a new portfolio that has a lower volatility than your current portfolio but with the same expected return?
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