Use the following information on the next two questions. Assume that the return and standard deviation of the market portfolio is 12% and 20%, respectively. Also assume that the risk-free rate is 3%. You decide to create a portfolio comprising the risk-free asset and the market portfolio. You want the portfolio to have a standard deviation of 25%. Find the expected return of your portfolio according to the CML.

.1825

.1725

.102

none of the above

Find the weight of the market portfolio in your portfolio.

80%

125%

158.33%

none of the above