Question 1: You have a portfolio consisting of Intel, GE and Con Edison. You put 20% in Intel, 65% in GE and 15% in Con Edison. Intel, GE and Con Edison have betas of 0.53, 1.54 and 1.31 respectively. What is your portfolio beta?

Question 2:

According to the CAPM, what is the expected return on a security given a market risk premium of 10%, a stock beta of 1.45, and a risk free interest rate of 1%? Put the answers in decimal place.