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 6%. 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; (ii) 25; (iii)50; (iv).75; (v) 1.0? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return Beta 0 0 (i) 25 () 50 (iv) 75 (V) 1.0 b. How does expected return vary with beta? (Do not round intermediate calculations.) The expected return (Click to sele v by % for a one unit increase in beta. References