You manage an optimal risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%.

i) What is slope of the capital allocation line offered by your portfolio?

ii) If your clients degree of risk aversion is A = 3, calculate your clients utility score of your portfolio.

iii) What proportion of the total investment should your client invest in your portfolio?

iv) What is the expected rate of return and standard deviation on your clients optimal complete portfolio?