Question: The Efficient Frontier is a key concept in Modern Portfolio Theory ( MPT ) that helps investors identify the optimal portfolio. Explain what the Efficient

The Efficient Frontier is a key concept in Modern Portfolio Theory (MPT) that helps investors
identify the optimal portfolio. Explain what the Efficient Frontier represents and how it is used to
construct an investment portfolio. Also, discuss how investors can use the Capital Allocation
Line (CAL) in combination with the Efficient Frontier to make portfolio allocation decisions.
How does the CAL help investors choose between risky and risk-free assets, and what
determines the investor's final portfolio selection along the CAL?

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