Problem 5. Suppose an investor has an investment portfolio that consists of $600,000 invested in the stock market index (M), $600,000 invested in Apple stock (A), and $400,000 invested in the risk-free asset (f). Assume that the standard deviation of the return on the stock market index is on = 0.19 and the standard deviation of Apple stock x = 0.18. The correlation between the stock market index return and Apple stock return is PMA = 0.57. The return on the risk-free asset is ry -0.045, the expected return on the market is Erm0.12, and the expected return on Apple stock is E[ral = 0.2 (a) What is the expected return, standard deviation and Sharpe ratio of only the risky part of this portfolio? (In other words, ignore the investment in the risk-free asset.) (b) What is the expected return, standard deviation and Sharpe ratio of the overall portfolio? (In other words, this time, include the risk-free asset in your calculation.) (e) Draw the Capital Allocation Line (CAL) for this investor. Make sure to plot expected returns in the vertical axis and standard deviations in the horizontal one. Indicate where the risk-free anset, the risky portion of the overall portfolio, and the overall complete portfolio lie along the CAL. What is the slope of the CAL