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Q1(b) Consider the table below with data on European risky assets for the past 10 years. The European risk-free rate is -0.2%. Use the data

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Q1(b) Consider the table below with data on European risky assets for the past 10 years. The European risk-free rate is -0.2%. Use the data in the table to draw a capital allocation line (CAL) for investors in these assets which might best describe the investment environment facing these investors. Explain the key features of this CAL. European Risky Assets [Source MSCI 2017] 3-year 5-year 10-year 4.96% 8.97% 1.69% Annual Returns (% p.a.) 13.1% 12.8% 20.4% Annualised Standard Deviation (%) BUCOM [12 Marks

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