Your investment portfolio consists of $15,000 invested in only one stock-Microsoft. Suppose the risk-free rate is 5%, Microsoft stock has an expected return of 12% and standard deviation of 40%, and the market portfolio has an expected return of 10% and standard deviation of 18%. Suppose you determine to make investment in market portfolio and risk-free assets. What investment has the highest possible expected return while having the same volatility as Microsoft? What is the expected return of this investment?

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