A stock has an expected return of 14.19 percent, the risk-free rate is 4.4 percent, and the market risk premium is 8.98 percent. What is the stock's beta?

• A. 1.11
• B. .98
• C. 1.06
• D. 1.09
• E. 1.03

You would like to combine a risky stock with a beta of 1.58 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock?

• A. 56.8 percent
• B. 49.6 percent
• C. 63.3 percent
• D. 47.2 percent
• E. 52.0 percent