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a) 30% b) 40% c) 60% d) Non of these William Lane uses the CML to advise his clients. Current market expectations are as below:

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a) 30% b) 40% c) 60% d) Non of these

William Lane uses the CML to advise his clients. Current market expectations are as below: Expected return on the market portfolio: 12% Standard deviation on the market portfolio: 20% Risk-free rate: 4% One of William's clients want to form a portfolio with 12% standard deviation objective. What is the appropriate allocation to the market portfolio to meet this client's risk tolerance

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