1.4 (9 Points) Assume the market portfolio consists of 65% stock A and 35% stock B (i.e. the portfolio studied in 3.2). The risk-free rate is 5%. a) Please determine the equation of the Capital Market Line. b) Which combination of the market portfolio and the risk-free asset yields a volatility of 0.01? Please also calculate the expected return of this combination. (Note: if you did not obtain results for 3.2, assume the market portfolio has an expected return of 0.09 and a volatility of 0.07) c) How can returns higher than that of the market portfolio alone be achieved on the Capital Market Line? No calculations required