Year	Large Company Stocks	Small Company Stocks	S&P500 Index	Treasury Bills
1994	1.32	-3.34	-2.32	4.39
1995	37.58	33.21	13.73	5.61
1996	22.96	16.50	46.94	5.14
1997	33.36	22.36	24.69	5.19
1998	28.58	-2.55	30.54	4.86
1999	21.04	21.26	8.97	4.80
2000	-9.10	-3.02	-2.04	5.98
2001	-11.89	-1.03	-17.26	3.33
2002	-22.10	-21.58	-24.29	1.61
2003	28.89	47.25	32.19	0.94
2004	10.88	18.33	4.43	1.14
2005	4.91	4.55	8.36	2.79
2006	15.79	18.29	12.36	4.97
2007	5.49	7.42	-4.15	4.52
`2008	-37.00	-40.54	-38.47	1.24
2009	26.46	43.89	23.49	0.15
2010	15.06	16.91	12.64	0.14
2011	5.53	-1.80	0.00	0.03
2012	7.26	15.91	13.29	0.05
2013	26.50	38.32	29.60	0.07

Calculate the beta of both large and small company stocks relative to the S&P 500 index and interpret your result.

5. Form an equally weighted portfolio of large and small stocks and compute the Reward-to-Risk Ratio (the slope of the Security Market Line).

6. Lower the weight of the equally weighted stock portfolio to 80 percent and add 20 percent US Treasury bills. Compute the resulting Reward-to-Risk Ratio. Increase the weight of US Treasury bills to 40 percent and 60 percent, repeat your computation, and interpret your results.