(CML) Below are the return statistics of stocks X and Y:

a. Calculate the capital market line (CML) using this data.

b. Find the difference in standard deviation between a portfolio on the CML and a portfolio on the efficient frontier, both with average return of 19%. What will be the weight of the risk-free asset in the CML portfolio?

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1 2 A B RETURN STATISTICS OF STOCKS X AND Y 3 Average return 4 Variance 5 Standard deviation 6 Covariance of returns 7 8 Risk-free return C X Y 19.00% 13.00% 0.09 0.03 30.00% 17.32% 0.01 3.00%