1. What is the CAPM expected return of a portfolio with 39% invested in the market portfolio, 19% invested in risk-free assets, and the rest invested in a stock with a beta of 2.2? The risk free rate is 0.8% and the expected market risk premium is 5.6%. Answer in percent, rounded to two decimal places.

2. A mutual fund earned an average annual return of 8.0% over the last 5 years. During that time, the average risk-free rate was 0.9% and the average market return was 6.3%. If the fund has beta of 1.04, what was its annual alpha? Answer in percent, rounded to two decimal places. (e.g., 4.32% = 4.32).

3. If the risk-free rate is 0.9% and the expected market return is 7.1%, what is the WACC of the company with the following characteristics? Answer in percent, rounded to two decimal places. Market value of debt: $514 million Market price of each share: $18 Number of shares outstanding: 71 million Tax rate: 18.4% The average yield on current debt (pre-tax cost of debt): 4.6% Beta: 1.2