Question: Please solve by hand and show all steps: 2. Suppose the market portfolio has an expected return of 15 percent and a standard deviation of

Please solve by hand and show all steps:

Please solve by hand and show all steps: 2. Suppose the market

2. Suppose the market portfolio has an expected return of 15 percent and a standard deviation of 10 percent. The risk-free rate is 5 percent and all of the assumptions of the CML hold. What is the expected return and standard deviation if you invest your wealth: a. entirely in the risk-free asset? b. one-half in the risk-free asset and one-half in the market portfolio? c. all in the market portfolio? d. all in the market portfolio and borrow one-third again as much for additional investment in the market portfolio

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