John Mattock is considering constructing a portfolio of two assets - Thermal Ltd shares and Kinetic Ltd shares. He wants to invest $5,250 in Thermal Ltd shares and $9,750 in Kinetic Ltd shares.

Due to uncertainty facing the investment environment in 2022, John conducts some research and decides in 2022 there would be a 35% possibility of recession, a 15% possibility of growth, and a 50% possibility of economic stability. John then conducts more analysis and concludes that under these states Thermal Ltd and Kinetic Ltd shares would provide the following returns:

State	Thermal Ltd Return	Kinetic Ltd Return
Growth	35%	20%
Stable	10%	15%
Recession	22%	7%

1. Calculate the expected return of Johns portfolio consisting of Thermal Ltd and Kinetic Ltd shares. (Show answer as a percentage correct to 2 decimal places.)
2. If Thermal Ltd beta is expected to be 0.75 and Kinetic Ltd beta is expected to be 1.25, calculate the beta of Johns portfolio consisting of Thermal Ltd and Kinetic Ltd shares. (Show answer correct to 3 decimal places.)