1. If the yearly Sharpe ratio of an ETF is 0.5, then what would be the monthly Sharpe ratio approximately? Express your answer as a decimal without unit and round it to the nearest thousandth.

2. The annual interest rate is =5% for the next year as a continuously compounding rate. What is the risk-free rate for the next year (compounded yearly) as a net return? Express your answer as a decimal after rounding it to the nearest basis point.