6.Go to the U.S. Treasury website at the following website. http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Find the most recent yield (return) on 2 year Treasury for RRF. Include a copy of the original data. Given that information, what is the current risk free rate?____________________

7. Over the past 70 years, the return on the market (S&P 500 index) exceeded the risk-free rate by an average of 6-8%. In other words, the market risk premium (RM-RRF) has averaged between 6-8%. For your calculations, assume the market risk premium (RM-RRF) is equal to 6.5%. Given your assumed MRP and your answer to #6 above, calculate the required rate of return for your portfolio listed in Table 3. Use the formula from the CAPM (the SML line equation) Rs=RRF + (RM-RRF) Beta. In other words, what is the required rate of return on the portfolio using the CAPM? ________________________(Show your work.)