Q7. Interpret the following CML equation. (3 marks) E(Rp)=Rf+ Market price of risk * Amount of portfolio risk 28. "With the increase of debt financing there is additional risk borne by the shareholders", explain this statement with reference to the specific risks and reasoning's for the shareholders to bear such risk. (5 marks) 09. A Pakistani investor who purchases the bonds issued by the Pak gov made the following statement. "By buying the debt instrument I am not exposed to default risk or purchasing power risk." Explain why you agree or disagree with this statement