We Do Bankruptcies is a law firm that specializes in providing advice to firms in financial distress. It prospers in recessions when other firms are struggling. Consequently, its beta is negative, -0.4.

A) If the interest rate on Treasury bills is 5% and the expected return on the market portfolio is 15%, what is the expected return on the share of the law firm according to the CAPM? ( Enter answer as a whole percent).

Expected Return =

B) Supposed you invested 90% of your wealth in the market portfolio and the remainder of your wealth in the share in the law firm. What would be the beta of your portfolio? ( Do not round intermediate calculations. Round your answers to 2 decimal places).

Beta =