Question: 1) Therisk-free rate is 4 % and the expected return on the market is 9.1 %. What is the Treynor Index for themarket? 2) The

1) Therisk-free rate is 4 % and the expected return on the market is 9.1 %. What is the Treynor Index for themarket?

2) The value of the shares in theS&P 500 index is $ 12.28 trillion. Apple Inc. is the largest company in the indexit is worth $ 547 billion. If you want to build a portfolio that earns the same return as theS&P 500, what is the portfolio weight onApple?

3) True orfalse? UnderSharpe's model, all investors hold the market portfolio.

For this question, I think it is true but I would like to double check.

4) You want to build a two asset portfolio including SPDRs andT-Bills that has an expected return of 8.42 %. A SPDR is a Standard andPoor's Depositary Receipt. A SPDR is an exchange traded fund(ETF) that is designed to generate the same return as theS&P 500 index. What is the portfolio weight on theT-Bills? Assume that the return on theT-Bills is 2.0 % and the expected return on theS&P 500 is 8.0 %..

I need help with these short questions. Please show calculations, thank you.

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