Question 5: Let's assume that current risk-free rate is 5%, expected market return is 20% and standard deviation of a market portfolio is 10%. Suppose there are two portfolios: (3 Marks) Lending (non-leveraged) Portfolio A with standard deviation 5% Borrowing (leveraged) Portfolio B with standard deviation 15% a. Derive the CML equation. b. Calculate the return of portfolio A and B. c. Calculate for each portfolio the weights invested in risk free and risky assets. Question 5: Let's assume that current risk-free rate is 5%, expected market return is 20% and standard deviation of a market portfolio is 10%. Suppose there are two portfolios: (3 Marks) Lending (non-leveraged) Portfolio A with standard deviation 5% Borrowing (leveraged) Portfolio B with standard deviation 15% a. Derive the CML equation. b. Calculate the return of portfolio A and B. c. Calculate for each portfolio the weights invested in risk free and risky assets