3. Please answer the question. 1) The complete portfolio refers to the investment in the risky portfolio and the index. (10points) a. True False 2) You have $500,000 available to invest. The risk-free rate, as well as your borrowing rate, is 8%. The return on the risky portfolio is 10%. If you wish to earn a 20% return, you should invest your money in the risk-free asset (10points) a. True False 3) The efficient frontier represents a set of portfolios that maximize expected return for a given level of risk. (10points) a. True False 4) According to the capital asset pricing model, a fairly priced security will plot along the security market line. (10points) True False 5) The SML is valid for individual assets only and the CML is valid for well- diversified portfolios only. (10points) a. True False