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1. (Capial make line) Assume at ihe expecred ate of reurn on the market poIlolio...

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1. (Capial make line) Assume at ihe expecred ate of reurn on the market poIlolio is 23% und the rate of return on T-bills (the risk-free lae) is 7% The standard deviajon ol lle market is 32% Assume that he markel portfolio is efficient (a) What is he eqaion o he cap narke line? (b) (i) If an expected FUtuin of 39% is desired, what is the standard deviation of his posiion? (ii) Ii you have $1,000 above position? ives how should you allocale i o achieve the (c) I you invesi $300 n the risk-free asset and $700 in he market portfolio, how nuch money should yon expect lo have at the end o ihe yuar

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