Answer the questions based on the following graph: 12 11 - CALO 10 Stocks 9 8 E(r.) = 7.16% Expected return (%) 7 Portfolio o 6 MIN Bonds 5 4 3 0. = 10.15% 2 0 5 30 35 10 15 20 25 Standard deviation (%) (a)-(1) How much is the risk-free rate? (b)-(2) What is the expected return of Portfolio O and what is the standard deviation of Portfolio-O? What is the Sharpe ratio of Portfolio O? (Hint: Sp = E(rp)="{]- & (c)(1) What is the slope of the capital allocation line (CAL)? (d)-(1) Why is Portfolio O the optimal risky portfolio for investors?" (e)-(3) If you invest in a portfolio with 50% weight in Portfolio O and 50% in risk free asset, what is the expected return of your portfolio? What is the standard deviation of your portfolio? What is the Sharpe ratio of your portfolio