3. Given that the risk free rate is 10%, the expected return on the market portfolio is 20% and the standard deviation of returns on the market portfolio is m = 0.2

i. What percentage of your wealth would you have to put into the riskless asset and into the market portfolio in order to have a 25% expected rate of return.

ii. What would be the variance of portfolio of part (i).

iii. What is the correlation between the portfolio in part (i) and market portfolio.