The following table presents the performance of stock and bond funds under various scenarios. Scenario Severe recession Mild recession Normal growth Boom Probability Rate of return of stock fund (%) 0.05 -40 0.20 -15 0.50 12 0.25 30 Rate of return of bond fund (%) -9 11 5 -2 Weights in Portfolio expected Portfolio standard stock fund return deviation p.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 1 i. Use Excel to draw the capital allocation line (CAL) on the diagram in part (e). Show the position of the optimal risky portfolio on the CAL. (3 marks) j. Suppose an investor chooses to invest 70% of his investment fund in the optimal risky portfolio and the remainder in a risk-free asset. Calculate the expected return and standard deviation of his portfolio. (4 marks)