1. What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35% of stock C with a beta of 1.73?

A. 1.0

B. 1.17

C. 1.22

D. 1.25

2. A project's expected return is 15%, which represents a 35% return in a booming economy and a 5% return in a stagnant economy. What is the probability of a booming economy occurring if these are the only two economic states?

a) 18.33%

b) 25.00%

c) 33.33%

d) 50.00%