The market return is 13% and the market standard deviation is 21%. The risk-free rate is 5%. 3R Groups stock has an expected return of 15.4% and a standard deviation of 30%.

1. What is the beta of 3R?

1. 1.3
2. 1.4
3. 1.5
4. 1.6

2. Further to the previous question, what is the correlation coefficient of the returns of the market and 3R?

1. -0.54
2. -0.14
3. 0.50
4. 0.91