1. Fremont Enterprises has an expected return of 16 % and Laurelhurst News has an expected return of 20 %. If you put 56 % of your portfolio in Laurelhurst and 44 % in? Fremont, what is the expected return of your? portfolio?
2. A bank will receive T+50 versus Libor or pay T+45 versus Libor. For a $100 million, 10-year swap what is the approximate profit that a bank erns by entering into both a fixed rate and an offsetting floating rate swap?