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Problem 6 - 1 0 ( Algo ) Consider historical data showing that the average annual rate of return on the S&P 5 0 0

Problem 6-10(Algo)
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 deviation has been about 35% per year. Assume these
values are representative of investors' expectations for future performance and that the current T-bill rate is 4%.
Calculate the expected return and variance 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 decimal places and "Variance" answers to 4 decimal places.
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