Question: 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% O. What Would Be The Expected Return And Beta Of Portfolios Constructed From These Two Assets With Weights In The S&P 500 Of 1) 0: (11) 0.25: (1 0.50: (M) 0.75: (V) 1.0? (Leave No Cells Blank – Be Certain To Enter “o Wherever Required. …

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% o. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of 1) 0: (11) 0.25: (1 0.50: (M) 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.) Expected Return Beta 0 ( 0.25 0.50 (M) 0.75 (v) 10 % b. How does expected retum vary with beta? (Do not round intermediate calculations.) The expected return by for a one unit increase in beta