86. (Computing the portfolio expected rate of return) Bronc Gerson is 60 years of age and is considering retirement. Bronc got his name from the fact that as a young man he spent several years in the rodeo circuit competing as a bareback rider. His retirement portfolio currently is valued at $950,000 and is allocated in Treasury bills, an S&P 500 Index fund, and an emerging market fund as follows: Treasury bills S&P 500 Index fund Emerging market fund Expected Return 2.5% 8.5% 12.5% $ Value 275,000 450,000 225,000 a. Based on the current portfolio composition and the expected rates of return, what is the expected rate of return for Bronc's portfolio? b. Bronc is considering a reallocation of his investments to include more Treasury bills and less exposure to emerging markets. If Bronc moves all of his money from the emerging market fund and puts it in Treasury bills, what will be the expected rate of return on the resulting portfolio