Historically the S&P500 index return has averaged 8% higher than the T-bill return, and its standard deviation has been 20% per year. Assume these historical averages represent investor expectations of future S&P500 risk and return also, and that the expected return on a T-bill is 5% with zero standard deviation.

Calculate the variance of a portfolio that has 80% weight allocated to the T-bill and 20% weight allocated to an S&P500 index-tracking ETF. Please enter your answer rounded to three decimal places.

Historically the S&P500 index return has averaged 8% higher than the T-bill return, and its standard deviation has been 20% per year. Assume these historical averages represent investor expectations of future S&P500 risk and return also, and that the expected return on a T-bill is 5% with zero standard deviation.

Calculate the variance of a portfolio that has 60% weight allocated to the T-bill and 40% weight allocated to an S&P500 index-tracking ETF. Please enter your answer rounded to three decimal places.