QUESTION 1 Use the CAPM equation to find the return for security 1, which has a Beta of 1.7. Assume the market return is expected to be 12% and the risk free rate is 3.4%. (Please write the return in decimal format using 5 decimal places, so if the answer is 22.134%, please write .22134)

QUESTION 2 Assume you own the following in your portfolio: 60 of stock 1 priced at $23 with a Beta of 0.6 60 of stock 2 priced at $29 with a Beta of 0.9 20 of stock 3 priced at $36 with a Beta of 1.0 What is the Beta of your total portfolio?