You have $1,000,000 to invest in a portfolio containing Stock R and Stock T. Your goal is to create a portfolio that has an expected return of 10 percent. If Stock R has an expected return of 11.5 percent and a beta of 1.05, and Stock T has an expected return of 9.8 percent and a beta of 2.75:

1. How much money will you invest in the two stocks?

2. What is the beta of your portfolio?

3. Answer the above two questions with your computations on paper or in Excel.