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, $-0\mathrm{.}2.$

a$.$ If the interest rate on Treasury bills is $4\%$ and the expected return on the market portfolio is $14\%,$ what is the expected return on

the shares of the law firm according to the CAPM?

Note: Enter your answer as a whole percent.

b$.$ Suppose you invested $70\%$ of your wealth in the market portfolio and the remainder of your wealth in the shares in the law firm.

What would be the beta of your portfolio?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.