You are evaluating various investment opportunities currently available. Assume a risk-free rate (rf ) of 4% and you have calculated expected returns and standard deviations for the following four well-diversified portfolios:

Portfolio	Expected Return (E[R])	Standard Deviation ()	Sharpe Ratio
1	11%	14%
2	9%	13%
3	5%	8%

a. For each portfilio, compute the Sharpe ratio and complete the last colum of the table.

b. Using your computations in part a, explain which of these portfolios is the closest to the market portfolio. Show the position of each portfolio on the return-standard deviation plane and draw the capital market line (CML)