# Question

The expected return on T-bills is 5 percent and the same on the Composite index is 9.24 percent. Calculate the expected return and standard deviation of portfolios invested in T bills and the Composite index with weights as follows:

Wbills Wmarket

0............ 1.0

.2......... .8

.4......... .6

.6......... .4

.8......... .2

1.0......... 0

Wbills Wmarket

0............ 1.0

.2......... .8

.4......... .6

.6......... .4

.8......... .2

1.0......... 0

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