1. Compute the present value of $5,600 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

2. If you have one security with an expected return of 7% and a standard deviation of 2% and a second security with an expected return of 13% and a standard deviation of 2.4%, what would be the standard deviation of a portfolio that consists of 30% of the first security and 70% of this second security if the correlation coefficient between the two securities is -.30?