"According to CML equation, the market portfolio has an expected return (R_M)

of 11% and standard deviation (_M) of 22%. You can borrow or lend at the risk-free rate of 3%.

You want to create efficient portfolios that'll fall on the capital market line (CML or efficiency

frontier) and be a combination of the market portfolio and risk-free asset. Assume that your risk

tolerance, reflected by standard deviation of your portfolio, is 15%. Calculate how much would

you invest in the market portfolio and risk-free asset (i.e., find weights of market portfolio and

risk-free assets)."

W_M=0.60, W_RF=0.40

W_M=0.50, W_RF=0.50

W_M=0.682, W_RF=0.318

W_M=0.30, W_RF=0.70