(A)  Barry is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows;

	Expected Return	$ Value
Treasury Bill	2.8%	51,000
S&P 500 Index Fund	6.4%	483,000
Emerging Market Fund	12.1%	216,000

(a) Based on the current portfolio composition and the expected rates of return given above, what is the expected rate of return for Barry's portfolio? 

(b)  Barry is considering a reallocation of his investments to include more Treasury bills and less exposure to emerging markets. If Barry moves all of his money from the emerging market fund and puts it in Treasury bills, what will be the expected rate of return on the resulting portfolio?