1) Stock R has a beta of 1.2, Stock S has a beta of 0.65, the expected rate of return on an average stock is 10%, and the risk-free rate is 4%.

By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.

%

2)Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a beta of 0.6, and $70,000 is invested in a stock with a beta of 2.5. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.