1. You have a $100,000 portfolio consisting of Apple, Berkshire Hathaway, and Amazon.com. You put $30,000 in Apple, $24,000 in Berkshire Hathaway, and the rest in Amazon.com. Apple, Berkshire, and Amazon have betas of 1.36, 0.81, and 1.37, respectively. What is your portfolios beta?

2. The risk-free rate is 5 percent. The expected market rate of return is 11.75 percent. You expect a stock with a beta of 1.45 to offer a rate of return of 14.50 percent. According to CAPM, what is the stock's alpha?Enter your answer rounded to two decimal places.