Question: I Q4 In the table below expected risk premium is calculated using risk 'ee rate of 4%. 1. Using CML, calculate Returns for all the

Q4 In the table below expected risk premium is calculated using risk 'ee rate of 4%. 1. Using CML, calculate Returns for all the Portfolios\" with risk tolerance of 8 percent. Aer calculating each portfolio's return, select the most appropriate portfolio for investment in accordance with the principle of CML theory. ii. How much of the funds should be invested in risk free asset in your nal Portfolio selected above. Portfolio Expected Return Standard Deviation Expected risk pl'enliumfunit of risk 1 7% 5% 0.40 2 9 10 0.50 3 11 15 0.47 4 13 21 0.43

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