Leroy Corporation is a $300 million business active in the production of widgets. Target weights of 20% debt and 80% equity in the capital structure have been achieved. The before-tax cost of debt for Leroy Corporation is estimated to equal the yield to maturity on its most recent issue of their bonds which is equal to 4%. Interest payments to be made on Leroy Corporation debt qualifies as a tax deductible expense while dividend payments made to common stockholders do not qualify for a corporate tax deduction. The marginal corporate tax rate for Leroy Corporation is estimated to equal 30%. At present, any flotation costs associated with any possible future sales of equity or debt capital are to be ignored in the cost of capital calculations. The risk free rate of interest is estimated to equal 3%. Beta for Leroy Corporation common stock is estimated to equal 1.2.

Required:
Estimate the market portfolio.