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What are the overall wights for the risk-free security

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Question - A complete portfolio is composed of the risk-free security and the optimal risky portfolio, Q, constructed with the market portfolio and Stock B. Given the risk-free rate of 4%. The market portfolio has an expected return of 10%, and Stock B has an expected return of 14%.

-Given the expected return of 12% for the optimal risky portfolio Q, what is the weight for the market portfolio?

-You would like to form a complete portfolio with the expected return of 18%. What are the overall wights for the risk-free security, market portfolio and Stock B, respectively?

Reference no: EM133051559

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