Use the following information to answer the next four questions:

A stock has a beta of 1.14 and an expected return of 10.5 percent. A risk-free asset currently earns 2.4 percent (this is essentially the risk-free interest rate).

#1) What is the market risk premium?

#2) What is the expected return on a portfolio that is equally invested in the two assets?

#3) If a portfolio of the two assets has a beta of 0.92, what is the portfolio weight in the risky asset?

#4) If a portfolio of the two assets has an expected return of 9 percent, what is its beta?