1. You own a portfolio that has $1,500 invested in Stock A and $3,400 invested in Stock B. If the expected returns on these stocks are 12 percent and 17 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.)

15.47%

14.50%

13.53%

15.78%

16.24%

2. You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1.9 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

1.05

0.10

0.15

1.16

1.10