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1. (6 points) Below is a graph of the Capital Allocation Line (CAL). E(r) P CAL 15% 5% 0 o 20% your work. Based on
1. (6 points) Below is a graph of the Capital Allocation Line (CAL). E(r) P CAL 15% 5% 0 o 20% your work. Based on the CAL graph, answer the following questions. Must show A) What is the Sharpe ratio for the risky portfolio P? (3 points) B) If I invest 50% in T-bill and 50% in the risky portfolio P, what is the expected return on my investment? (3 points)
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