Suppose that Arron is holding an equity portfolio that is worth $1,600,000 and has a beta of 1.10 from which the expected return is 10% per annum. She would like to purchase $200,000 of units in a hedge fund that has a beta of 0.8 from which a return of 5% per annum is expected. Answer the following questions:

1. The total value of the new portfolio is __________.
2. The weight in the hedge fund in the new portfolio is __________%. (Round to two decimal places.)
3. The beta of the new portfolio is __________. (Round to two decimal places.)
4. The expected return of the new portfolio is __________%.
5. The addition of the hedge fund __________ (has or has not) improved the overall risk-return profile of the portfolio.