You have $9,000 to invest. You've done some security analysisand generated the following data for three stocks and Treasurybills, including weights in the optimal risky portfolio (ORP) fromdoing Markowitz portfolio optimization:
| Security | Stock A | Stock B | Stock C | T-bills |
| Expected return (%) | 12 | 8 | 5 | 4 |
| Variance | 0.04 | 0.03 | 0.02 | 0 |
| Beta | 1.2 | 1.5 | 0.8 | 0 |
| Weight in ORP (%) | 44 | 18 | 38 | 0 |
Part 1
What is the expected return of the optimal risky portfolio(ORP)?
Part 2
How much money should you invest in the ORP to achieve anexpected return of 8% for the complete portfolio (in $)?
Part 3
If you want to achieve an expected return of 8% for the completeportfolio, how much money should you invest in stock A (in $)?
