This question is a continuance of the one sent prior.

Optimal portfolio:

Expected rate of return Risk (standard deviation)

Equity fund 16% 38%

Corporate fund 7% 25%

T-bill 3%

1. Find the weight of the corporate bond fund in the optimal portfolio formed by equity fund and corporate bond fund.
2. Find the weight of the equity fund in the optimal portfolio formed by equity fund and corporate bond fund.
3. Find the expected rate of return of the optimal portfolio in %.
4. Find the risk (standard deviation) of the optimal portfolio in %.
5. Compute the slope of the Capital allocation line(CAL) using the optimal portfolio as the risky portfolio.