Suppose that the S&P 500, with a beta of 1, has an expected return of 17% and T-bills provide a risk-free return of 5%.

a.	What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 of (i) 0; (ii) 0.25; (iii) 0.5; (iv) 0.75; (v) 1?(Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 2 decimal places.)

		Expected Return	Beta
(i)	0	%
(ii)	0.25	%
(iii)	0.5	%
(iv)	0.75	%
(v)	1	%

b.	On the basis of your answer to (a), what is the trade-off between risk and return, that is, how does expected return vary with beta?

Slope of the return

%