You are on the board of the Springfield College Endowment Fund (SCEF), which is evaluating two potential managers for its investments: Mr. Monty Burns (MB) and Mr. Waylon Smithers (WS). The expected returns on portfolios MB and WS are 13% and 14%, respectively. The beta of MB is 0.9 while that of W S is 1.6. The T-Bill rate is 6%, while the expected return of the market index is 11%. The standard deviation of portfolio MB is 9%, while that of WS is 28%, and that of the index is 20%. 1. Suppose SCEF currently holds a market index portfolio. Based on the data, would you add portfolios MB and/or W S to SCEF's mix of holdings? (Hint: check for under/over- pricing.) 2. If SCEF were ordered to invest only in T-Bills and one of the portfolios MB or WS, which portfolio should SCEF invest? Why? You are on the board of the Springfield College Endowment Fund (SCEF), which is evaluating two potential managers for its investments: Mr. Monty Burns (MB) and Mr. Waylon Smithers (WS). The expected returns on portfolios MB and WS are 13% and 14%, respectively. The beta of MB is 0.9 while that of W S is 1.6. The T-Bill rate is 6%, while the expected return of the market index is 11%. The standard deviation of portfolio MB is 9%, while that of WS is 28%, and that of the index is 20%. 1. Suppose SCEF currently holds a market index portfolio. Based on the data, would you add portfolios MB and/or W S to SCEF's mix of holdings? (Hint: check for under/over- pricing.) 2. If SCEF were ordered to invest only in T-Bills and one of the portfolios MB or WS, which portfolio should SCEF invest? Why