Suppose that the expected rate of return on the market portfolio is
20% and the rate of return on the risk-free asset is 8%. The standard
deviation of the market portfolio is 32%.

Assume that the market portfolio is efficient.

a) What is the equation for the Capital Market Line? Explain your answer
and interpret this relationship.

b) If an expected rate of return of 17% was required, what is the standard
deviation of this position?

c) Suppose an asset with a return of 17% and a standard deviation of 24%
that is correlated,   0.4with the market exists. What is the beta of
this asset? Interpret your result.