1. Assume the expected return on the market portfolio is 15.0% with volatility of 12.8%. The risk-free rate is 4%. 

a)

What is the market portfolio's Sharpe ratio?

b)

What is the slope of the CML?

c)

 

What is the Sharpe ratio of a portfolio equally allocated between the riskfree asset (50%) and the market portfolio (50%)? 

d)

 

What is the beta of a portfolio equally allocated between the risk-free asset (50%) and the market portfolio (50%)? 

e)

What is the function that characterizes the CML here, in slope-intercept form?