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( b ) Your investment portfolio consists of RM 1 5 , 0 0 0 invested in only one stock, Roof Berhad. The risk -

(b) Your investment portfolio consists of RM15,000 invested in only one stock, Roof Berhad. The risk-free interest is 5%. The expected return is 12% and standard deviation of 40% for Roof Berhad. The market portfolio has an expected return of 10% and a standard deviation of 18%. The CAPM conditions are all verified.
(i) Graph the position of Roof Berhad and market portfolio in Capital Market Line (CML).
(4 marks)

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