1. Your investment club has only two stocks in its portfolio. $40,000 is invested in a stock with a beta of 0.7, and $70,000 is invested in a stock with a beta of 1.2. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

Suppose that the risk-free rate is 5.5% and that the market risk premium is 5%.

1. What is the required return on the market? Round your answer to two decimal places.

   %

2. What is the required return on a stock with a beta of 1.0? Round your answer to two decimal places.

   %

3. What is the required return on a stock with a beta of 2.4? Round your answer to two decimal places.