Q$11($i$)$ The annual risk free rate Of return is $5\%$ and the expected returnon the market is $12\%.$ The standard deviation of the market is $15\%$ per annumYou decide to invest in a portfolio that combines the risk$-$free asset and the market, with borrowing or lending permitted at the risk$-$free rate $($i$.$e$.$ a portfolio on the Capital Market Line. You are happy to accept a standard deviation of $20\%.$ but no more.Considering the limit on standard deviation, what is the maximum possible expected return of your combined portfolio? What would be the weight of the risk$-$free asset & the market in this portfolio? What is the beta of this portfolio?$($ii$)$ Your parents want to invest their entire life savings, in a portfolio that achieves diversification by equal$-$weighting across three different stocks, instead of buying a market index fund Should your parents worry about the portfolio's systematic $($market$)$ risk OR its firm$-$specific$($idiosyncratic$)$ risk. OR both? Explain our answer concisely.$$