Problem 12-18 Portfolio Risk and Return (LO2) Suppose that the S\&P 500, with a beta of 1.0, has an expected return of 16% and T-bills provide a risk-free return of 3%. a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S\&P 500 of (1) 0; (2) 0.25 ; (3) 0.50 ; (4) 0.75 ; (5) 1.0 ? Note: Leave no cells blank - be certain to enter " 0 " wherever required. Do not round intermediate calculations. Enter the value of Expected return as a percentage rounded to 2 decimal places and value of Beta rounded to 2 decimal places. b. How does the expected return vary with beta? Note: Do not round intermediate calculations