10 question again assuming the risk-free retu 12. (CML) Below are the return statistics of stocks X and Y: 2 | RETURN STATISTICS OF STOCKS X AND Y 3 Average return 19.00% 4 Variance 0.09 5 Standard deviation 30.00% 6 Covariance of returns 0.01 13.00% 0.03 17.32% 8 Risk-free return 3.00% Analysis and the Capital Asset Pricing Model a. Calculate the capital market line (CML) using this data. h. Find the difference in standard deviation between a portfolio on the CML and a portfolio on the efficient frontier, both with average return of 1994. What will be the weight of the risk-free asset in the CML portfolio? 13 CML with leveragel You have $1.000 to invest The risk Them 10 question again assuming the risk-free retu 12. (CML) Below are the return statistics of stocks X and Y: 2 | RETURN STATISTICS OF STOCKS X AND Y 3 Average return 19.00% 4 Variance 0.09 5 Standard deviation 30.00% 6 Covariance of returns 0.01 13.00% 0.03 17.32% 8 Risk-free return 3.00% Analysis and the Capital Asset Pricing Model a. Calculate the capital market line (CML) using this data. h. Find the difference in standard deviation between a portfolio on the CML and a portfolio on the efficient frontier, both with average return of 1994. What will be the weight of the risk-free asset in the CML portfolio? 13 CML with leveragel You have $1.000 to invest The risk Them