Explain figure 6.4, referencing in your answer the axis, intercepts, slopes, etc. In short, what does the capital allocation line (CAL) depict? Is the CAL theoretically limited by the endpoints of the risk-free asset and portfolio P? If not, why? How can the CAL be extended? Finally, what is the complete portfolio?

Elr) CAL= Capital Allocation Line E(,) = 15% = 22 % Figure 64 The investment opportunity set with a risky asset and a risk-free asset in the expected return-standard deviation plane st the expected etut