3. (7 points) The figure below shows the Efficient Frontier. Portfolios on the Efficient Frontier provides the minimum level of risk given a specific expected return. B Expected return R A Expected risk a. (4 points) Draw the Capital Market Line (CML). Explain how you find it. What portfolio does the tangent point stand for? b. (3 points) Which part of the CML your draw means borrowing money to buy market portfolio? Point it out on the graph. 3. (7 points) The figure below shows the Efficient Frontier. Portfolios on the Efficient Frontier provides the minimum level of risk given a specific expected return. B Expected return R A Expected risk a. (4 points) Draw the Capital Market Line (CML). Explain how you find it. What portfolio does the tangent point stand for? b. (3 points) Which part of the CML your draw means borrowing money to buy market portfolio? Point it out on the graph