1. Billy Football Sports has a total investment of $500 million in five companies:

Company	Investment ($MM)	Beta
A	130	0.3
B	160	1.5
C	70	3.2
D	90	2.0
E	50	1.0
Total	500

a) What is the beta of this portfolio?

b) Interpret the beta you just calculated.

2. You have discovered that when the required rate of return on a bond you own fell by 0.5 percent from 8.3 percent to 7.8 percent, the fair present value rose from $955 to $975. The bond pays interest annually. What is the duration of this bond? Assume annual payments. (Do not round intermediate calculations. Round your answer to 1 decimal place. (e.g. 32.1)) Duration of this bond I years