1. Suppose you have $1000 to invest and are using two stocks (A and B) to construct a market-neutral portfolio. Based on your analysis, the weight for A = 37.4 (attention, it is 37.4, not 37.4%), calculate the weight for B. What do those numbers (the two weights) mean? 2. If based on the CAPM regression on Facebook during 2017 - 2018, we get the following regression equation: y = 0.005 + 1.26x What is Facebook's alpha? What is its historical beta? What is Facebook's future beta? What is your judgement about Facebook based on the performance in 2017-2018? Is it a good investment according to the criteria we mentioned in the class