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Your portfolio consists of a full investment in just one stock, Telia. Suppose this stock...

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Finance

Your portfolio consists of a full investment in just one stock, Telia. Suppose this stock has an expected return of 15% and volatility of 35%. Suppose further that the tangency portfolio has an expected return of 11% and a volatility of 17%. Also, assume that the risk-free rate is 6%. Under the CAPM assumptions,

What is the expected return of the alternative investment that has the highest possible expected return while having the same volatility as your investment? (Write your final answer as a percentage and round it to two decimal digits)

I do not really know where I am doing wrong, but I calculate it like this

w x 17% + (1-w) x 6% = 35%

w= 2 63636363636

1-2,63636363636= -1,636363636

1 636363636 *11%= 18%

Men det r fel i fakta.

kan du visa mig lsningen steg fr steg?

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