6) (10') (10 points) You have $100.000 and is considering the following investment options: (a) putting all your money in the market portfolio: Rm= 10% p.a., standard deviation = 15% (b) investing 60% in the market portfolio, and 40% in risk free assets with 4% expected return (c) borrowing an additional $40.000 at the risk-free rate and investing everything in the market portfolio. Questions: (i) Calculate the return and standard deviation for options (b) e (c) (3 points) (ii) Draw a graph of the Capital Market Line; show the axes labels, the two points that define CML, and the CML equation. (2 points) (iii) Plot the (b) and (c) investment portfolios on the graph (3 points) (iv) Which portfolio do you consider to be the most efficient? Explain why (2 points)