1) You own a stock portfolio invested 35 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are 0.85, 0.52, 1.13, and 0.51, respectively. What is the portfolio beta?

0.73

0.69

0.68

0.71

0.66

2) A stock has an expected return of 15 percent, its beta is 0.9, and the risk-free rate is 7.5 percent. What must the expected return on the market be?

15.83%

8.33%

16.47%

15.04%

16.63%