Following your explanation, your brother calms down a little bit and then asks you to estimate the expected return of his portfolio. You estimate that Treasury bills are paying 2.5% per annum and that the S&P500 index is expected to outperform Treasury Bills by 5% per annum.

3. Estimate the betas for Disney Ltd AND MGM Resorts International [express to two decimal places eg. 2.56].

4. Estimate the beta AND the expected return of the diversified portfolio proposed by your brother [express beta and expected return to two decimal places e.g. 2.56 and the expected return to two decimal place e.g. 35.24%].