1.) You have a portfolio consisting of Intel, GE and Con Edison. You put 20% in Intel, 65% in GE and 15% in Con Edison. Intel, GE and Con Edison have betas of 0.43, 1.48 and 1.75 respectively. What is your portfolio beta?

2.) According to the CAPM, what is the expected return on a security given a market risk premium of 12%, a stock beta of 1.51, and a risk free interest rate of 1%? Put the answers in decimal place.