1. There is a 17.20% probability of an average economy and a 82.80% probability of an above average economy. You invest 41.80% of your money in Stock S and 58.20% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 10.40% and 14.00%, respectively. In an above average economy the the expected returns for Stock S and T are 23.90% and 27.20%, respectively. What is the expected return for this two stock portfolio?

2. You are invested 38.90% in growth stocks with a beta of 1.62, 28.90% in value stocks with a beta of 1.24, and 32.20% in the market portfolio. What is the beta of your portfolio?