Consider historical data showing that the average annual rate of return on the S&P $500$ portfolio over the past $85$

years has averaged roughly $8\%$ more than the Treasury bill return and that the S&P $500$ standard devlation has been

about $26\%$ per year. Assume these values are representatlive of Investors' expectations for future performance and

that the current T$-$bill rate is $2\%.$

Calculate the expected return and varlance of portfolios Invested In T$-$bills and the S&P $500$ index with weights as

shown below.

Note: Round your "Expected Return" answers to $2$ declmal places and "Varlance" answers to $4$ declmal places.