A stock has an expected return of 12 percent and a beta of 1.16, and the expected return on the market is 11 percent.

Required:

What must the risk-free rate be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Risk-free rate

%

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.3 and the total portfolio is equally as risky as the market.

Required:

What must the beta be for the other stock in your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)