1. (1pt) You own a portfolio with 30% invested in a risk-free asset and 30% invested in a stock with a beta of 1.6. The total portfolio is equally as risky as the market. What must the beta be for the other stock representing the remaining 40% of your portfolio? 2. (1pt) A stock has a beta of 0.5. If the risk-free rate is 1% and the expected return on the market is 7%, what must the expected return on this stock be