5. The Capital Market Line and the Security Market Line In the following table, indicate whether each statement refers to the Capital Market Line (CML) or to the Socurity Market Line (SML). If an invertor wants to hold an efficient portfolio that offers an expected return of 12%, should the investor seiect portfolio A that exhibita a stand ard deviation of 49% or portfalio C that has a standard devation of 2% ? (Assume that both the portfollos offer an expected return of 12%. ) The investor should solect portfolio C. The investor should select portolio A: The rational investor will be ind fferent about the portfollo selection. If an investor wants to hold an efficient portfolio that offers an expected return of 12%, should the investor select portfolio A that exhibits a standard deviation of 4% or portfolio C that has a standard deviation of 2% ? (Assume that both the portfolios offer an expected return of 12% ) The investor should select portiolio C. The investor should select portfolio A. The rational investor wal be indifferent about the portfollo selection. Which of the following is the correct formula for the CML? ri=rAF+(RPM)bSfP=rNY+(r^MrMP)/MPri=rNr+(rMrMr)bh