L is 5 more than W L=5+W P=2(L+W) P=26 26=2(L+W) L=5+W sub 26=2(5+W+W) divide both sides by 2 13=5+W+W 13=5+2W minus 5 both sides 8=2W divide 2 both sides 4=W
The expected return of the portfolio consisting of 50% tsla and 50% sbux will be given by: E(r)=WbReturn+WaReturn E(r)=0.5(4.73)+0.5(1.72) E(r)=2.365+0.86 E(r)=3.225%
