A

B

Given a risk-free rate of 3.7%, a market risk premium of 6.2%, and a beta of 0.7, what is the expected return of the stock? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not put the percent sign in your answer. Enter your response below Spielberg builds a portfolio by investing in two stocks only: Google (GOOG) and Nokia (NOK). According to the CAPM, the expected risk premium (i.e., the expected return minus the risk-free rate) of GOOG is 8.84% and the expected risk premium of NOK is 6.87%. The beta of GOOG is equal to 1.26. If Spielberg puts 74% of his money in GOOG stock and 26% in NOK stock, what is the approximate beta of his portfolio? 31 31 p= | Number (Please round your answer with two decimals)