Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows:

Expected Returns $ Value

Treasury bills 4.8% 72,000

S&P 500 Index Fund 7.7% 445,000

Emerging Market Fund 11.2% 233,000

a.Based on the current portfolio composition and the given expected rates of return, the expected rate of return for Barry's portfolio is _______%. (Round to two decimal places.)

Part 2

b.If Barry moves all his money out of emerging market funds and puts it in Treasury bills, the expected rate of return for his portfolio is ______%. (Round to two decimal places.)