Consider an economy with four asset classes as in the following table. What are the asset weights of the "CAPM Market" portfolio? Use the weights from question 1 to determine the beta of the CAPM Market portfolio. Verify that the answer matches the prediction from the model. Add the assumption that the risk-free asset has a return of 2% and US Equity has an expected return of 10%. What are the returns of the other asset classes? Add the assumption that the market portfolio has a volatility of 10%? What is the Sharpe-ratio (the price of an additional unit of risk; the slope of the capital markets line)? How much risk would there be if you levered the market portfolio to attain a 15% expected return? Explain if it is possible within this CAPM model for an investor to own a portfolio with 20% risk and an expected return of 15%