What is the expected return of a portfolio of two stocks that has $700$ shares of stock A$,$ which has a price of $$30\mathrm{.}00$ per share and an expected return of $9\mathrm{.}05\%,$ and $$37,000$ of stock B$,$ which has a beta of $1\mathrm{.}25?$ The market has an expected return of $12\mathrm{.}80\%,$ the inflation rate is $2\mathrm{.}30\%,$ and the risk$-$free rate is $2\mathrm{.}60\%.$ Answer in decimal format, rounded to the nearest hundredth of a percent $($for example, $1\mathrm{.}23\%$ would be entered as $0\mathrm{.}0123).$

$10$ points

QUESTION $2$

County Idiot stock is expected to be priced at $$43\mathrm{.}78$ in $1$ year. It is expected to pay its next dividend, which is expected to be $$1\mathrm{.}61,$ in $1$ year. The stock has a beta of $0\mathrm{.}87.$ The market has an expected return of $14\mathrm{.}96\%,$ the risk$-$free rate is $4\mathrm{.}37\%,$ and the inflation rate is $2\mathrm{.}74\%.$ What is the current price of County Idiot stock?