here are the questions....................................

(a) Workshop questions for Topic 6 The table below provides the expected return and standard deviation of returns for the risk-free asset and three investments: Portfolio A, Portfolio B and Portfolio C. Using this data, answer the following questions: (i) Explain which of the three portfolios must not lie on the efficient frontier. (ii) Identify which of these three portfolios might be a candidate for the tangency portfolio. Asset Q) Expected Return (E(RQ) Standard Deviation (or) Portfolio A 0.10 0.18 Portfolio B 0.08 0.09 Portfolio C 0.12 0.18 Risk-Free Rate ((0 (6) Explain the difference between the Capital Market Line (CML) and the Security Market Line (SML). The expected return of the market portfolio is 10% p.a. and the standard deviation of returns is 16% p.a. The risk-free rate is 5% p.a. An investor has $80,000, borrows a further $20,000 at the risk-free rate and invests the entire $100,000 in the market portfolio. Calculate the expected return and standard deviation of returns of the resultant combined portfolio. Shares in XY Z Ltd have a standard deviation of returns of 18% p.a. and a covariance with returns on the market portfolio of 0.02. The market portfolio has an expected return of 12% p.a. and a standard deviation of returns of 12% p.a. and the risk-free rate is 6%. XYZ's shares generate an actual return of 14% p.a. Use the CAPM to calculate whether XY Z Ltd shares are over-priced, under-priced or fairly priced. The stock of Aardvark Enterprises has a beta of 1.5 and that of Zebra Enterprises has a beta of 0.7. The risk-free rate is assumed to be 3 percent, and the difference between the expected return on the market and the risk-free rate is assumed to be 8.0 percent. What are the expected returns on the two securities? Consider a portfolio formed by investing equally in the two securities, Aardvark and Zebra. What is the expected return on the portfolio