2. Answer the following questions using the data in the table below: Risk free rate 4% = Expected Return Risk Knicks 7% 9% Bulls 10% 14% Celtics Lakers 12% 16% 20%

30% a) Which portfolio above would be considered the market portfolio? Show why. b) What combination on the capital market line will produce a return of 6%? Comment on this portfolio (weighting); with regards to what it represents and how you would achieve it (construction) c) What is the risk (as measured by standard deviation) of the portfolio you calculated in b?