The Capital Market Line (CML) expresses the riskreturn trade-off for a portfolio as follows:

E(R_port )=RFR+_port [(E(R_m)-RFR)/_m ]

Where E(R_port) is expected return of the portfolio; RFR is risk free rate; _port is standard deviation of the portfolio; E(R_m) is expected return of the market portfolio; _m is standard deviation of the market portfolio.

Required:

Extend this expression to allow for the evaluation of any individual risky Asset i. Explain the steps in details.