1) A mutual fund earned an average annual return of 8.7% over a 5-year period. During that time, the average risk-free rate was 1.4% and the average market return was 9.9% per year. If the fund had a portfolio beta of 0.9, what was its CAPM alpha? Answer in percent, rounded to one decimal place.

2) A company has a beta of 0.9, pre-tax cost of debt of 5.0% and an effective corporate tax rate of 31%. 21% of its capital structure is debt and the rest is equity. The current risk-free rate is 1.0% and the expected market return is 7.0%. What is this company's weighted average cost of capital? Answer in percent, rounded to one decimal place.