1. A stock has an expected return of 13.1 percent, a beta of 1.28, and the expected return on the market is 11 percent. What must the risk-free rate be? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

2. You invested $60,000 into a mutual fund last year when the NAV was $30/share. During the course of the year, the fund paid a $2.50/share, which you fully reinvested into the fund at a price of $40/share. The NAV today is $28/share. Find your HPR. Now, assume that the fund charged you a 2% front end load when you invested your $60,000 a year ago. Find your HPR, assuming that all else remained the same.