Hilton Hotels has a beta of 1.1, while Sun Motels has a beta of 0.9. The required rate of return on an index fund that holds the entire stock market is 12%. The risk-free rate is 7%. By how much does Hilton's required return exceed Sun's required return? 1. a. b. c. d. 1.0% 1.5% 2.0% 2.5% 2. A portfolio is invested equally in stock A and a risk free asset. The expected return of stock A is 15% and the beta is 1.3. The expected return on the risk free asset is 5%. What is the beta of the portfolio? a. 1.3 b. 1.0 . 0.65 d. 0.33