Describe how an investor may combine a risk free asset and one risky asset in order to obtain the optimal portfolio for the investor.

List and describe $3$ of the more important types of mutual funds according to their investment policy and use.

Discuss margin buying of common stock. Include in your discussion the advantages and disadvantages, the types of margin requirements, how these requirements are met, and who determines these requirements

Suppose that you have $$1$ million and the following $2$ opportunities from which to construct a portfolio:

Risk free asset earning $9\%$ pa$.$

Risky asset with expected return of $30\%$ pa and standard deviation of $40\%,$ if you construct a portfolio with a standard deviation of $25\%,$ what is the expected rate of return?