Assume that the expected rate of return on the market portfolio is 20% and the rate of return on T-bills (the risk-free rate) is 6%. The standard deviation of the market return is 25%. Assume that the market portfolio is efficient. (keep 4 decimal places to your answers, e.g. xxx.1234.) 1. What is the slope of the capital market line Write down the equation of the capital market line. (No need to key-in here.) 2. If an efficient asset has expected return of 27%, what is the standard deviation of this asset if you have $5,000 to invest, how much should you allocate it to market portfolio and the risk-free respectively in order to achieve the above return Standard deviation: Allocation to market ($): Allocation to risk-free asset ($): 3. If you invest $16,000 in the risk-free asset and $24,000 in the market portfolio, how much money should you expect to have at the end of the year Expected value ($)