Question: 1. What is the expected return of a portfolio of two stocks that has 3,500 shares of stock A, which has a price of 24.2 dollars per share and an expected return of 7.83 percent, and 66,800 dollars of stock B, which has a beta of 1.53? The market has an expected return of 10.02 percent, the inflation rate is 1.13 percent, and the risk-free rate is 5.54 percent. Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

2. Middlefield Motors stock is expected to be priced at 82.23 dollars in 1 year. It is expected to pay its next dividend, which is expected to be 2.3 dollars, in 1 year. The stock has a beta of 0.56. The market has an expected return of 13.87 percent, the risk-free rate is 5.2 percent, and the inflation rate is 1.49 percent. What is the current price of Middlefield Motors stock?