1. Suppose the government of Brazil plants to develop a major hydroelectric project in order to replace oil imports and conserve scarce foreign exchange, which of the following international lending agencies is most likely to finance this size project?

a. the asia development bank

b. the world bank

c. the international monetary fund

d. the african development bank

2. Assume that the standard deviation of the US market portfolio is 18.2% the standard deviation of the world portfolio is 17.1%, and the correlation between the US and non US market portfolios is .47. Suppose you invest 25% of your money in the US stock market and the other 75% in the non US portfolio. What is the standard deviation of your portfolio?

a. 17.1

b. 18.6

c.15.5

d. 16.7