Question: Please show solution: Given the following information, please 1) draw the capital allocation line; 2) estimate the return and risk if you invest 150% of
Please show solution:

Given the following information, please 1) draw the capital allocation line; 2) estimate the return and risk if you invest 150% of the money into security P: 3) calculate the reward-to-variability ratio; 4) explain the meaning of the reward-to-variability ratio; Interest rate Bid: 4% Ask: 5% Return Risk (Standard deviation) Risky security P 12% 10.56%
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