can you explain all the assumptions please

33. Assume the expected return on the market portfolio is 12% and its standard deviation is 10%. The risk-free rate is 6%. Denote the expected return and standard deviation of portfolios on the CML with E(r) and SD. Which statement on the CML is FALSE? A) The Sharpe ratio of any efficient portfolio on the CML line is constant and equal to each other. B) The CML can be represented by the following equation: E(r) = 0.06+ SD. C) The standard deviation of a CML portfolio that contains 50% savings and 50% of the market portfolio equals 5%. D) The expected return of a CML portfolio that contains 120% of the market portfolio and 20% borrowed money is 15%. Ans: D 5