Question: I need help with B Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a

I need help with B

I need help with B Suppose that the S&P 500, with a

Suppose that the S&P 500, with a beta of 1.0, has an expected return of 13% and T-bills provide a risk-free return of 6%. a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (1) O; (ii) 0.25; (ii) 0.50; (iv) 0.75; (V) 1.0? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter the value of Expected return as a percentage rounded to 2 decimal places and value of Beta rounded to 2 decimal places.) Beta (0) 0 Expected Return 6.001% 7.75% (ii) 0.25 iii) 0.50 9.50% 0.25 0.50 0.75 1.00 (iv) 0.75 1.0 11.25% 13.00 % (v) b. How does expected return vary with beta? (Do not round intermediate calculations.) The expected return by % for a one unit increase in beta. decreases increases

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