Suppose that the S&P 500, with a beta of 1.0. has an expected return of 13% and T-bills provide a risk free return of 4%.

a. What would be the expected return and beta of portfolios constructed from these two assets with weights in the S&P 500 (i) 0; (ii) 0.25; (iii) 0.50; (iv) 0.75; (v) 1.0?

(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.)