4) 19 Points] Use the following diagram to answer the questions below: Efficient Frontier Return D TS a) [1 Point] Identify which portfolio (A, B, C, or D) is the market portfolio (assuming that one of these portfolios is the market portfolio). b) [2 Point] Explain why, although portfolio B has higher expected return than portfolio D, portfolio Bis not an optimal portfolio whereas portfolio D is. c) [2 Points] Explain how an investor could achieve a higher expected return than portfolio A, but with the same risk level. d) [2 Points] Explain why an investor cannot achieve a higher expected return than portfolio C with the same risk level. e) [2 Points) If a firm's expected return was below the securities market line (SML), what does this imply about the stock price of the firm according to the CAPM? Explain your reasoning. 4) 19 Points] Use the following diagram to answer the questions below: Efficient Frontier Return D TS a) [1 Point] Identify which portfolio (A, B, C, or D) is the market portfolio (assuming that one of these portfolios is the market portfolio). b) [2 Point] Explain why, although portfolio B has higher expected return than portfolio D, portfolio Bis not an optimal portfolio whereas portfolio D is. c) [2 Points] Explain how an investor could achieve a higher expected return than portfolio A, but with the same risk level. d) [2 Points] Explain why an investor cannot achieve a higher expected return than portfolio C with the same risk level. e) [2 Points) If a firm's expected return was below the securities market line (SML), what does this imply about the stock price of the firm according to the CAPM? Explain your reasoning