The goal of this exercise is to understand how to construct the optimal complete portfolio, which is the combination of risk-free asset and an optimal risky portfolio. . Assume the latest annualized risk-free rate of return = 4%. Assume that the market portfolio (and not VTI) is the proxy for the optimal risky portfolio. Use the mean return and standard deviation of return (using the 80 annual returns given in Assignment 1) as the risky portfolio's expected return and risk. It turns out to be 12.3% and 20.2%. Assume correlation of market's return with the risk-free return = 0. a) Compute the risk and expected return of the complete portfolios (various portfolios in the investment opportunity set). Start with 0% in the risky asset and go on to 200% in the risky asset (borrow $1 for every $1 of your own investment and invest $2 in risky asset) in increments of 5%. b) Graph the investment opportunity set (capital allocation line). In the graph, make sure you mark clearly (i) the X-axis and Yaxis, (ii) the risky portfolio, and (iii) the risk-free portfolio. c) What is the slope of CAL? How is it related to the Sharpe Ratio of the market portfolio