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4) (35 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of retum

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4) (35 points) You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of retum of 16% and a standard deviation of 20% and a treasury bill with a rate of retum of 5%. a. What is the proportion of your complete portfolio that should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 9%? b. What are the proportions of the risky portfolio and risk free asset when a complete portfolio that has an expected value of S1,200 in one year? c. Draw the CAL of your portfolio on an expected retum/standard deviation diagram. d. What is the slope of the capital allocation line (reward to volatility ratio) formed with the risky portfolio

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