Peter, your friend, wants to form a portfolio comprising a US Treasury bill and Apple stock. The Treasury bill is yielding 4.0%. Apple stock, according to analysts, has an expected return of 13.2%, beta of 1.3, and standard deviation of 30%. Peter wants to form a portfolio that has the same beta as the market.

a. What are the weights of the Treasury bill and Apple stock in Peter's portfolio? (5 pts)

b. Calculate the expected return of his portfolio.