You want to construct a portfolio containing U.S. Treasury bills and two stocks. Its weight in T-bills is 24%, in Stock A is 40%, and in Stock B is 36%. If the beta of the Stock A is 1.60 and the beta of the portfolio is 0.98, what does the beta of Stock B have to be?

Multiple Choice

• 1.13

• 1.42

• 0.94

• 0.76

Suppose you construct a cross-assets portfolio by including only the Treasury bills and an index mutual fund which represents the overall market. The weight of the Treasury bills in your portfolio is 48%. You know the risk-free rate is 6.39% and the market portfolio return is 14.22%. What's the best prediction on your portfolio's expected return?

Multiple Choice

• 11.51%

• 10.46%

• 8.37%

• 12.55%