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Suppose Mr . Miran has an amount of DIST 3 , 0 0 0 , 0 0 0 . He needs financial advice from you.

Suppose Mr. Miran 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 =2.8. 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 6.75%. 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. Mime should select for his investment?
(ii) What proportion of Mr. Mitan's assets should be invested in risky assets?
(iii) What would be Mr. Minn's complete portfolio's expected returns and standard deviation?

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