Bob has $10,000 and wants to split the money into the value-weighted market portfolio (P) and a T-bill (proxy for cash) with the following sample estimates:

- Find a portfolio that yields an expected return of 10%. What is the s.d of this portfolio?

- Find another portfolio C that yields an expected return of 19%. What is the s.d. of this portfolio?

E E[r]=15 =15%; 0, = 22%; r, ; , ; 7%.