Question: Draw the Capital Allocation Line based on the following information: Interest rate Risky security P Return Bid: 1% Ask: 2% 8% Risk (Standard deviation) 11.00%

Draw the Capital Allocation Line based on the following information:

Interest rate Risky security P
Return Bid: 1% Ask: 2% 8%
Risk (Standard deviation) 11.00%
W(rf)= -50.00%
W(p)= 80.00%
E ( R )= 5.40%
Risk= 8.80%
Reward to Risk Ratio 0.47

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