(a) The secunty market line shows the combinations of hisky and nisk-fhee invertments. With the whe of a alagram, explain what happens to the tangency pintolle if investors have aitferent interest rates for savings and borrowing. (b) Me vanance and the return of the marcet portfoino are 20% and 10%, hespoctively. The hisk-thee retum is 2%. Aportollo has a beta of 0.8 and idiosyncratic resk with a rariance of 15%. . What is the neauined return on the portfolio in order that it matches the manget portfollo in terms of the sharpe ratio? comonstrate what this implies for the m2 ratio. (c) A nisk-neutral competitive market maker clears the mancet for trading in a stock after observing the incoming oraers trom a nolse trader and an informed trader i who pertectly knows the true value of the sto(k). The nowe traaer buys and sells I share of the stock with eaual probbility, whereas the informed trader buys the stock if the value is \$14 (high)and sells the stock if the value is 55(10W). The market maker belipres inmially that there is a 45%. probability it nigh ralue and a 55%. probablity of low value. What photits can the intormed trader expect to make in this market