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Please answer. Consider historical data showing that the average annual rate of return...

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Finance

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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 30% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index with weights as shown below. (Enter your answers as decimals rounded to 4 places. Leave no cells blank - be certain to enter "O" wherever required.) WBills Windex Expected Return Variance 0.0 1.0 0.1300 0.0900 Example 0.2 0.8 0.4 0.6 0.6 0.4 0.8 0.2 1.0 0.0

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