There are two stocks in the market, Stock A and Stock B. The price of Stock A today is $84. The price of Stock A next year will be $73 if the economy is in a recession, $96 if the economy is normal, and $106 if the economy is expanding. The probabilities of recession, normal times, and expansion are .29, .51, and .20, respectively. Stock A pays no dividends and has a correlation of .79 with the market portfolio. Stock B has an expected return of 14.9 percent, a standard deviation of 34.9 percent, a correlation with the market portfolio of .33, and a correlation with Stock A of .45. The market portfolio has a standard deviation of 18.9 percent. Assume the CAPM holds.

What is the expected return of a portfolio consisting of 70 percent of Stock A and 30 percent of Stock B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b-2.	What is the standard deviation of a portfolio consisting of 70 percent of Stock A and 30 percent of Stock B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

c.	What is the beta of the portfolio in part (b)? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g