1. Stock J has a beta of 1.22 and an expected return of 13.26 percent, while Stock K has a beta of 0.77 and an expected return of 10.20 percent. You want a portfolio with the same risk as the market. Requirement 1: What is the portfolio weight of each stock? (Round your answers to 4 decimal places (e.g., 32.1616).) Stock J Stock K Requirement 2: What is the expected return of your portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Expected return of the portfolio %

2. A stock has an expected return of 13.40 percent and a beta of 1.15, and the expected return on the market is 12.40 percent. Required: What must the risk-free rate be? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) Risk-free rate %