1. When the riskless rate is 4%, assume the optimal combination of risky assets produces a portfolio with an expected rate of return equal to 13%, and a standard deviation of 10%.
2. 1. Along the efficient tradeoff line, what is the value of the reward-to-risk ratio?
   2. Suppose you wish to tolerate only 1/5 of the risk present in the optimal risky portfolio. How must you allocate your investment between the risk-free asset and the optimal risky portfolio?
   3. Suppose your uncle wishes to bear 1.5 times the risk present in the optimal risky portfolio. How can he make this happen? In particular,
      1. What would be the weight of the risky and the riskless asset?
      2. What would be the standard deviation of your uncles portfolio?
      3. What would be the expected return of your uncles portfolio?