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a ) Assume the current risk - free rate is 0 . 4 3 % per month. Draw the Capital Allocation Line ( CAL )
a Assume the current riskfree rate is per month. Draw the Capital Allocation Line CAL by combining the riskfree asset and the Hang Seng Index. Hang Send Index's expected return is and the standard deviation is Please make sure to include a drawing picture of the graph, I asked the same question times but no one included a visual of the graph.
b If you want to invest now, assuming you are a riskaverse invese investor, which point will you choose from thie CAL Specify which point and why
c Do you agree with the analysis in parts a and b If not, explain how you would do differently.
Please provide detailed explanation, thank you!
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