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Part i. You are evaluating two investment alternatives. One is a passive market portfolio with an expected return of 10% and a standard deviation of

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Part i. You are evaluating two investment alternatives. One is a passive market portfolio with an expected return of 10% and a standard deviation of 16%. The other is a fund that is actively managed by your broker. This fund has an expected return of 15% and a standard deviation of 20%. The risk-free rate is currently 7%. Answer the below based on this information. a) What is the slope of the Capital Market Line? arpre b) What is the slope of the Capital Allocation Line offered by your broker's fund? c) Draw the CML and the CAL on one graph with proper labelling

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