Mr Moroley has just finished reading a textbook on portfolio theory and he is keen to put his newfound knowledge into action by investing £1,000. He has identified the efficient frontier for portfolios of risky assets according to the following table.

He has also estimated that the redemption yield on short-dated Treasury bills is 7 per cent and has identified the shape of a typical utility curve given his own attitude towards risk. Points that plot on this utility curve are as follows:
Expected return (%)......................................Standard deviation (%)
8.8.....................................................................................1
9.0.....................................................................................3
9.5.....................................................................................5
10.2....................................................................................6
11.2....................................................................................7
Using this information, construct a diagram that enables you to identify how Mr Moroley will split his investment between Treasury bills and the market portfolio.

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Standard deviation (%) Portfolio Expected return (%) 10 10.6 14