1. An individual has $40,000 invested in a stock with a beta of 0.8 and another $35,000 invested in a stock with a beta of 1.7. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
2. Assume that the risk-free rate is 5.5% and the expected return on the market is 12%. What is the required rate of return on a stock with a beta of 1.9? Round your answer to two decimal places.