RE$-$POST:

Suppose Mr$.$ Mizan has an amount of DIST $3,000,000.$ He needs financial advice from you. According to your evaluation, he has a risk aversion level of A $=2\mathrm{.}8.$ There arc to investment alternatives. The first is a passive market portfolio pith a $14\%$ expected return and a $16\%$ standard deviation. The other alternative is a fund actively managed by your broker, which has a $17\%$ expected return and a $20\%$ standard deviation. The current risk$-$free rate is $6\mathrm{.}75\%.$ Answer the questions below based on this information.

$($i$)$ What is the slope of the capital market line and the capital allocation line offered by your broker's fund? Which option Mr$.$ Mizan should select for his investment?

$($ii$)$ What proportion of Mr$.$ Mizan's assets should be invested in risky assets?

$($iii$)$ What would be Mr$.$ Mizan's complete portfolio's expected returns and standard deviation?