You have $1$ million dollars of which you decided to invest $60\%$ in Alpha fund has an expected risk

premium of $5\%$ and an expected Standard deviation of $8\%.$ The remaining $40\%,$ you want to invest in

T$-$bills that have a rate of $4\%.$

What would be the expected rate of return and standard deviation on your portfolio?

Plot the Capital Allocation Line that passes through Alpha fund and calculate the reward$-$

to$-$variability ratio.

If you could borrow at a rate of $9\%$ and use the money to buy more of Alpha fund, would you do

it$?($Explain Why$)$

Calculate the expected return and standard deviation of each of stocks $x$ and $Y$ presented in the tables

below.