a. The graph above shows the efficient frontier theory that was developed by Nobel Laurate, Harry Markowitz, way back in 1952.Briefly explain the risk-return profile for risk-averse investors with regard to portfolio efficient frontier theory (4 marks).

b. Critically analyse the Modigliani &Miller (MM) Theorem of Capital structure and Pecking Order Theory of Capital Structure (4 marks)

Expected Returns Efficient Frontier TH Risk (Standard Deviation)