Portfolio	Expected Return		Standard Deviation
Q	8.7	%	10.5	%
R	10.4		14.4
S	5.3		4.8
T	12.5		16.1
U	6.8		6.2

Assume that the risk-free rate is 4.0 percent. Round your answers to four decimal places.

If you are only willing to make an investment with = 8.0%, is it possible for you to earn a return of 8.0 percent? Do not round intermediate calculations. Round your answer to one decimal place.

1. Expected portfolio return: %

   It -Select-isis notItem 11 possible to earn an expected return of 8.0% with a portfolio whose standard deviation is 8.0%.

2. What is the minimum level of risk that would be necessary for an investment to earn 8.0 percent? Do not round intermediate calculations. Round your answer to one decimal place.

   %

   What is the composition of the portfolio along the CML that will generate that expected return? Round your answers to four decimal places.

   w_MKT:

   w_{risk-free asset}:

3. Suppose you are now willing to make an investment with = 17.7%. What would be the investment proportions in the riskless asset and the market portfolio for this portfolio? Use a minus sign to enter negative values, if any. Round your answers to four decimal places.

   w_MKT:

   w_{risk-free asset}:

   What is the expected return for this portfolio? Round your answer to one decimal place.