1.You have $10,000 and you want to know if Utes,LLC is a good buy. The firms total risk is 15%, its systematic risk is 1.1, the t-bill rate is 0.6%, the 30 year treasury rate is 3.5%, and the average market return is 8.0%. According to the CAPM, what is the expected return on Utes, LLC? (Enter your answer in percent, but without the % symbol. For example, if your answer is 7.2%, type "7.2" as your answer.)

2.You are considering an investment in Tar Heel Championship, LLC. You know the risk free rate is 2.0%, the expected return on the market portfolio is 9.2%, and the standard deviation of the market portfolio is 22.09%. You also know that Tar Heel Championship, LLC has a standard deviation of 45.3% but it has a covariance of zero with the market portfolio. What is the CAPM beta of stock Tar Heel Championship, LLC? (hint: you do not need to do any calculations to answer this) 2.0 0.0 1.0 1.5 0.5