capital markt line

An investor considers buying shares of a new company at the price of $80 per share. Because the company is new, its rate of return has an estimated standard deviation of a 40%. The current risk free rate is 2% and the expected rate of return of the market portfolio is 18% with a 0 = 30%. The price of the shares of the new company is expected to reach $104 per share in one year. Determine the following: a Is it attractive to invest in the new company based on the capital market line (CML) consideration? Show all details and justify your answer. b Repeat part a) based on new information that the standard deviation of expected rate of return of new company is increased to 60%