1. What should be the beta of a portfolio with Er)-100%, risk-free rate=0%, and E(Rm)=10%? What can you say about the riskiness of such a portfolio? (6 points) 2. The price of a stock is $100. The expected return is 15%, and the risk-free rate is 5%. And the market portfolio is supposed to deliver 20%. Assuming stock pays constant dividend in perpetuity, what is the new price when the beta becomes half its current value? Double of its current value? All other variables stay constant? (9 points)