You have decided to be on the CML (capital market line) line. The risk-free interest rate is 4%, the expected return on the market portfolio is 13% and the standard deviation of the market portfolio is 40%.

A. (5 points) What is your expected return on the discount and you invest all your money in the market portfolio, and in addition you invest another 65% of your value in the market portfolio (through leverage)?

B. (5 pts) Alternatively, what percentage of your portfolio will you invest in the market portfolio, if you are interested in holding a portfolio with a standard deviation of 30%, assuming you are still on the CML line?