Suppose that the S&P 500, with a beta of 1.0, has an expected return of 14% and T-bills provide a risk-free return of 5%. a. What would be the expected returm and beta of portfolios constructed from...

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Extracted text: Suppose that the S&P 500, with a beta of 1.0, has an expected return of 14% and T-bills provide a risk-free return of 5%. a. What would be the expected returm and beta of portfolios constructed from these two assets with welghts in the S&P 500 of (1) 0; (iI) 0.25; () 0.50; (iv) 0.75; (V) 1.0? (Leave no cells blank - be certain to enter "O" wherever required. Do not round Intermedlate calculations. Enter the value of Expected return as a percentage rounded to 2 declmal places and value of Beta rounded to 2 decimal places.) Expected Return Beta (i) (i) (ii) (v) (v) 0.25 0.50 0.75 1.0 b. How does expected return vary with beta? (Do not round intermediate calculations.) % for a one unit increase in beta. by The expected return Next > 7 of 10 < rrev="" macbook="">