For Next Time, Part 2: Practice with the CAPM 1. You're considering two investments, Amazon and Exxon. If Amazon has a of 1.4 and Exxon has a of 0.5, which is riskier? 2. If the risk-free rate is 3% and the market risk premium is 7%, what are the expected returns for Amazon and Exxon? 3. The B of a portfolio is a weighted average of the B's of the stocks in the portfolio. The weights are the relative investment in each stock. If you invest 25% of your money in Exxon and 75% in Amazon, what is the B of your portfolio? Given the information in question 2, what is your portfolio's expected return