A. You want to construct a portfolio containing equal amounts of U.S. Treasury bills and two stocks. If the beta of the first stock is 0.79 and the beta of the portfolio is 1.8, what does the beta of the second stock have to be?

B. An investor expects a return of 18.5% on his portfolio with a beta of 1.55. If the expected market risk premium increases from 4.6% to 9.0%, what return should he now expect on the portfolio?