a. Arbor Systems and Gencore stocks both have a volatility of 33%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is (a) +1.00, (b) 0.50, (c) 0.00, (d) 0.50, and (e) 1.00. In which of the cases is the volatility lower than that of the original stocks? (Round to one decimal place)

b. EJH has a beta of 1.4, CSH has a beta of 0.5, and KMS has a beta of 1. If you put 25% of your money in EJH, 15% in CSH, and 60% in KMS, what is the beta of your portfolio?

The beta of your portfolio is ___. (round to two decimal places)