The slope (reward to risk ratio) of the Capital Allocation Line formed with the risky asset and the risk-free asset is equal to You are choosing a portfolio from a market index fund and risk-free asset. The risk-free rate is 6%, the expected return on the market index fund is 14%, and its standard deviation is 20%. If you choose a portfolio with an expected return of 10.8%, what is its standard deviation? 12. You receive a $200,000 30-yr adjustable rate mortgage loan from a hank at an initial APR of 6.00%, compounded monthly. If the rate changes to 6.5% after the first year, find the monthly payment for the second year