c) S o you nested S1000 at the beginning of each of 2016, 2017, 2018 and withdrawal funds at the end of 2018, what is your average return (IRR)? (6 points) You buy a $1 million face value 180-day t-bill at a discount yield of 6% 1) What price would you pay for it? 2) What is your simple interest yield? 3) What is your holding period yield if you sell it after 60 days at a discount yield of 897 IV (12 Points) You are the manager for a $100 million portfolio, which may be invested in any combination of bonds and stocks. The following table provides estimates of risk and return for bonds and stocks: Bonds Stocks (#1) (#2) Expected Return 8% 15% Standard Deviation 12% 30% Correlation between Bonds and Stocks = 0.0 1. What is the expected return and standard deviation of each of the following portfolios? Portfolio Fraction in Bonds 1.0 0.5 0.0 Fraction in Stocks 0.0 0.5 1.0 1. What fractions must be invested in Bonds and Stocks to obtain the min portfolio? 2. What is the expected return of the minimum risk portfolio? What is the principle of dominance? Explain. Does the minimum risk portfolio dominate any of the above portfolios? What is your expected return if you buy Stocks (#2) on margin. Assun requirement of 0.40 and a borrowing cast of 4 percent