2. A stock has an expected return of 11.85%, its beta is 1.24, and the risk-free rate is 3.6%. What must the expected return on the market be?

3. You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 11.4%. If Stock X has an expected return of 12.7% and a beta of 1.25, and Stock Y has an expected return of 8.68% and a beta of 0.85, how much money will you invest in Stock Y? What is the beta of your portfolio?