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 11% and 14% respectively. The beta of MB is 0.8 while that of that WS is 1.5. The T-Bill rate is 7%, while the expected return of the market index is 12%. The standard deviation of portfolio MB is 10%, while that of WS is 31%, and that of the index is 20%. 1. Suppose the SCEF currently holds a market index portfolio. Based on the data, would you add porfolios MB and WS to SCEF's mix of holdings? (Hint: Check for under/over pricing). 2. If SCEF were ordered to invest in only TBills and one of the portfolios MB or WS, which portfolio should SCEF invest? Why