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B The following data is available to Encik Huzree, a portfolio manager in Topaz Securities Bhd Stock ABC DEF GHI Expected Return % 30 25
B The following data is available to Encik Huzree, a portfolio manager in Topaz Securities Bhd Stock ABC DEF GHI Expected Return % 30 25 20 Standard Deviation % 17 12 10 As an investment executive in Topaz Securities Bhd, assist Encik Huzree to advise the investors on the following: . Assuming the investors would like to invest in both risky and riskless investment. The expected return for risk free investment is 10% with zero standard deviation: a, llustrate the Capital Market Line (CML) graph showing the optimal portfolio of combination risky and riskless investment, and b. Explain the optimal portfolio in Capital Market Line. (4 marks)
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