(6) SHORT ANSWER (TOTAL: 100 MARKS) Indicate the following positions on the correct diagram that represents an opportunity set a combination of all existing securities at the market.- REQUIRED:- Show all your workings in as much detail as possible. All your workings will be marked. Provide your answers in dollars, not millions of dollars, e.g., $1,234,567. Do not round intermediate calculations. Show your answers rounded to 2 decimal places, e.g., 32.8732 should be rounded down to 32.87; 32.8761 should be rounded up to 32.88.- (1) Point MVP as the minimum variance portfolio, (2) Capital Market Line CML (3) Point A which represents the market portfolio, (4) Point B which provides the same return but with more risk than point A (5) Point C which has the same risk but a lower return than point A (6) The partial line Liend which represents riskless lending on CML (7) The partial line Lborrow which presents riskless borrowing on CML (8) The part EF as the efficient frontier. e Question 1 (25 marks) Return and Risk (10 marks) Part A. The Figure purports to show the range of attainable combinations of expected return and standard deviation. Type in your answer here. Please adjust the box to accommodate all your workings. rf (a) (b) Required: (a) Which diagram is incorrectly drawn and why? i (2 marks) Type in your answer here. Please adjust the box to accommodate all your workings. (6) SHORT ANSWER (TOTAL: 100 MARKS) Indicate the following positions on the correct diagram that represents an opportunity set a combination of all existing securities at the market.- REQUIRED:- Show all your workings in as much detail as possible. All your workings will be marked. Provide your answers in dollars, not millions of dollars, e.g., $1,234,567. Do not round intermediate calculations. Show your answers rounded to 2 decimal places, e.g., 32.8732 should be rounded down to 32.87; 32.8761 should be rounded up to 32.88.- (1) Point MVP as the minimum variance portfolio, (2) Capital Market Line CML (3) Point A which represents the market portfolio, (4) Point B which provides the same return but with more risk than point A (5) Point C which has the same risk but a lower return than point A (6) The partial line Liend which represents riskless lending on CML (7) The partial line Lborrow which presents riskless borrowing on CML (8) The part EF as the efficient frontier. e Question 1 (25 marks) Return and Risk (10 marks) Part A. The Figure purports to show the range of attainable combinations of expected return and standard deviation. Type in your answer here. Please adjust the box to accommodate all your workings. rf (a) (b) Required: (a) Which diagram is incorrectly drawn and why? i (2 marks) Type in your answer here. Please adjust the box to accommodate all your workings
