1. (20 points) (Capital market line) Assume that the expected rte market portfolio is 16% and the rate of return on T-bills (the risk-free standard deviation of the market is 40%. Assume that the market (a) Sketch the capital (b) i) If an expected return of 22% is desired, what IS the standard devat on of uis posts of teturn on the rate) is 4%. The portfolio is efficient. m arket line in the (o,T) plane . What is the equation of the CMIZ (b)(i) If you have $1,000 to invest, how should you allocate it to achieve the above pousition? (c) If you invest $500 in the risk-free asset and $500 in the market portfolio, how ue money should you expect to have at the end of the year