active portfolio with expected return 18% and standard deviation 28%. The risk-free rate is 3%. 27. Draw the CML and your funds' CAL on an expected return-standard deviation diagram. a. What is the slope of the CML? b. Characterize in one short paragraph the advantage of your fund over the passive fund. 28. Your client ponders whether to switch the 70% that is invested in your fund to the passive portfolio. a. Explain to your client the disadvantage of the switch. lower the slope of his CAL by reducing the expected return net of the fee.) 29. Consider again the client in Problem 19 with A=3.5. a. If he chose to invest in the passive portfolio, what proportion, y, would he select? choice of y )? active portfolio with expected return 18% and standard deviation 28%. The risk-free rate is 3%. 27. Draw the CML and your funds' CAL on an expected return-standard deviation diagram. a. What is the slope of the CML? b. Characterize in one short paragraph the advantage of your fund over the passive fund. 28. Your client ponders whether to switch the 70% that is invested in your fund to the passive portfolio. a. Explain to your client the disadvantage of the switch. lower the slope of his CAL by reducing the expected return net of the fee.) 29. Consider again the client in Problem 19 with A=3.5. a. If he chose to invest in the passive portfolio, what proportion, y, would he select? choice of y )