Mr. PELAGIE has a sum of €30,000. He decides to invest the entire amount in stocks
from the LEONARD company. The risk-free rate is 5%, the expected profitability of this portfolio of securities is
12%, that of the market portfolio is 10%.
The volatility of LEONARD stock is 30%.
The volatility of the market security is 13%.
What is the composition of the portfolio with the minimum volatility, but which offers the same
profitability than that of the LEONARD share?