You would like to combine a risky stock with a beta of 1.37 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock? ____%

The common stock of CrisisGreat is expected to earn 11 percent in a recession, 7 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 20 percent while the probability of a recession is 5 percent. What is the expected rate of return on this stock? ____ %