When the three-month treasury bill rate is 0.4%, and the return on the S&P 500 index is 7.7% per year. The Beta for Walmart stock is 0.19 and the beta for Apple Computer Inc. is 1.46. Please answer the following questions.

• In the diagram above, please fill in _______ and _______ with both symbols in the SML and numbers.
• (C) is the beta of (Walmart, Market average, Apple, or the treasury bill)? please choose one to fill in . ________
• (D) is the slope of the SML please fill in the numerical number _________
• (F) is the beta of (Walmart, Market Average, Apple, or the treasury bill)? please choose one to fill in . ________
• (E)= _______ (fill in equation and numerical answers)
• (G)= _______ (fill in equation and numerical answers)
• There is a portfolio consists of 50% of the market portfolio and 50% of Apple Computer Inc. Stock. What is the expected return on this portfolio? return on protfolio= __________

Rate of return (G) SML (B) (E) slope=SML=(D) (A) (1)= (C) (H)=Beta =1 (F) Beta=0