1. What should be the beta of a portfolio with E(r)=100%, risk-free rate=0%, and E(Rm) -10%? What can you say about the riskiness of such a portfolio?

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?