Question: please explain step by step. thank you 4. (5 points) Assume that the expected return on the market portfolio is 15% with standard deviation of

please explain step by step. thank you

4. (5 points) Assume that the expected return on the market portfolio is 15% with standard deviation of 20%. The risk-free rate is r You need to give financial advice to a client who is risk averse. = 5%. (a) Draw the efficient frontier and give the equation that describes it. (b) Assume your client initially holds a portfolio with expected return of 8% and standard deviation of 10%. Show this portfolio in the graph you drew in part (a): Can you recommend a better port- folio that your client will surely prefer to the one he is currently holding

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