1. a. An individual plans to invest in Stock A and/or Stock B. The expected returns are 9% and 10% for Stocks A and B, respectively. The betas are 0.95 and 1.25 for Stocks A and B, respectively. Find the expected return and beta for the portfolio if the individual invests 75% of his funds in Stock A. (E(R_p) = 9.25%, _p = 1.025)

b. Suppose the individual described in Part a, forms a portfolio consisting of three assets: 10% invested in Stock A, 30% invested in Stock B, and 60% invested in a risk-free asset with a return of 6%. What is the expected return and beta for this portfolio?