a)What is the beta of such a portfolio if you rebalanced every week?

b)What is the annual Sharpe ratio of a portfolio with 30% invested in the stock and 70% in the S&P 500? The T-bill yield is still 2%.

Assume that the stock has an expected return of 11% and the S&P 500 of 5% (both EARs), and that the annualized variances and covariance stay the same as in the past.

c)What is the annual Sharpe ratio of the optimal risky portfolio?

\begin{tabular}{c|c|r|r|r} & A & B & \multicolumn{1}{|c|}{ C } & D \\ \hline 1 & Week & Stock & S\&P 500 & \\ \hline 2 & 0 & 30.57 & 2,653 & \\ \hline 3 & 1 & 31.21 & 2,595 & \\ \hline 4 & 2 & 34.14 & 2,631 & \\ \hline 5 & 3 & 33.51 & 2,709 & \\ \hline 6 & 4 & 31.19 & 2,762 & \\ \hline 7 & 5 & 33.49 & 2,688 & \\ \hline 8 & 6 & 35.26 & 2,753 & \\ \hline 9 & 7 & 31.18 & 2,692 & \\ \hline 10 & 8 & 31.51 & 2,790 & \\ \hline 11 & 9 & 32.39 & 2,943 & \\ \hline 12 & 10 & 33.56 & 2,906 & \\ \hline 13 & Sum & 358.01 & 30,122 & = SUM(C2:C12) \\ \hline \end{tabular}