17. The table below presents performance data for two mutual funds over the last 5 years -- the Socially Responsible Fund, and the Diamonds Are Forever Resource Fund. The table also includes information on the returns of the market index and T-Bills over the same period. Use this information to answer the question that follows. Return Standard Deviation Beta Responsible 11.5% 38% 2.7 Diamonds 8% 30.50% 2.5 Market 6.5% 11% 1 T-Bills 1% N/A If you had invested in the market portfolio and T-Bills in such a way as to match the beta of Diamonds Are Forever, then what return would you have earned? The return on your portfolio would have been %. (Round to two decimal places.) 18. Consider a value-weighted market index that includes the following two companies. You form a portfolio to mimic the index. On Day 1 the portfolio has weights which are equal to the value of each company's shares relative to the total value of both companies. Answer the questions that follow. Company 1 Company 2 Day Price # of Shares Price # of Shares 1 $8 800 $12 1,500 2. $8.56 800 $12.72 1,500 a. What is the portfolio weight for Company 1 on Day 1? b. What is the return on the portfolio from Day 1 to Day 2? c. What is the percentage change in the total value of the stocks in the index from Day 1 to day 2? a. What is the portfolio weight for Company 1 on Day 1? The portfolio weight for Company 1 on Day 1 is %. (Round to two decimal places.) b. What is the return on the portfolio from Day 1 to Day 2? The return on the portfolio from Day 1 to Day 2 is %. (Round to two decimal places.) c. What is the percentage change in the total value of the stocks in the index from Day 1 to day 2? The percentage change is %. (Round to two decimal places.)