Markowitz theory indicates to create and construct a portfolio of assets to maximize returns within a given level of risk, or to devise one with a desired, specified and expected level of return with...

Markowitz theory indicates to create and construct a portfolio of assets to maximize returns within a given level of risk, or to devise one with a desired, specified and expected level of return with the least amount of risk. Under this broader concept, answer the followings two questions:

Question no 1

Justify with detail explanation, why an optimal portfolio should lie on security market line curve

Question no 2

Being an efficient market investor, justify how an efficient frontier curve can be helpful for you in portfolio selection process (clear discussion with explanation)

(use their own words to avoids from plagirism)