Portfolio Risk and Return. Suppose that the S&P 500, with a beta of 1.0, has an expected return of 10% and T-bills provide a risk-free return of 4%.

a) How would you construct a portfolio from these two assets with an expected return of 8%?
Specifically, what will be the weights in the S&P 500 versus the T-bills?
b) How would you construct a portfolio from these two assets with a beta of 0.4?
c) Find the risk premium of the portfolio in (a) and (b), and show that they are proportional to their betas.

The systems analysis phase includes three activities – requirements modeling, data and process modeling, and consideration of development strategies. choose two of these activities, explain their differences, and discuss how they are used to accomplish the main objective which is to understand the proposed project.

The proliferation of bittorrent and other file sharing media have threatened the copyright system. based on an understanding of incentives and opportunity cost, how are the decisions of musicians likely impacted?

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $