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Q1: Answer the questions based on the following graph: (a) How much is the risk-free rate? (b) What is the expected return of Portfolio O

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Q1: Answer the questions based on the following graph: (a) How much is the risk-free rate? (b) What is the expected return of Portfolio O and what is the standard deviation of Portfolio O? What is the Sharpe ratio of Portfolio O? [Hint: Sp=pE(rp)rf ] (c) What is the slope of the capital allocation line (CAL)? (d) Why is Portfolio O efficient? And Why is Portfolio O the optimal risky portfolio for investors

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