Troy is investing $48,000 in Fund A and $32,000 in Fund B. Fund A and Fund B have expected returns of 6.5% and 8.5%, respectively. Calculate the expected portfolio return.

		7.3%.
		7.5%.
		7.7%.
		7.9%.

Which of the following is NOT correct regarding the CAPM?

		Conceptually, the CAPM represents expected returns for various combinations of the risk-free rate of return and the market portfolio.
		The CAPM assumes all investors are rational and have uniform expectations about the risk-return relationship for investment alternatives.
		The CAPM assumes investors can borrow at the risk-free rate of return, as well as lend at the risk-free rate of return.
		CAPM is based on the notion that expected returns on individual stocks depends on their total risk levels.