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4. Imagine that we are in 22 7'd century . After hundreds of waves of mergers and acquisitions , there are only two listed companies

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4. Imagine that we are in 22 7'd century . After hundreds of" waves of mergers and acquisitions , there are only two listed companies in the market : West Co . and Fast Co . There are only two investors ( sovereignty wealth fund managers ) , Mr. Hussein and Miss Wang, who do investment management for individuals . Mr. Hussein's investment on risky assets is $10 billion on Stock West and $ 4 billion on Stock Fast . Miss Wang's portfolio on risky assets is $ 1 1 billion on West and $ 10 billion on Fast . They also invest* on risk - tice assets by borrowing or saving . The returns of West and East are as follows : West Co. Fast CO . Expected Return 9/0 13 Standard Deviation %/0 10 The correlation between two returns is U . We assume that the market is in equilibrium . What is the slope of the capital market line* I CML) of the market ? ( Hint : borrowing and lending interest rates may be different )

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