1) Suppose you invest 20% of your portfolio in Campbell Soup and 80% in Boeing. The expected dollar return on your Campbell Soup stock is 3.1% and on Boeing is 9.5%. The standard deviations of their annualized daily returns are 15.8% and 23.7%, respectively. Assuming a correlation coefficient of 1, the portfolios expected rate of return will be the closest to.

A) 8.22%

b) 6.95%

C) 19.22%

D) 15.42%

2) Suppose you invest 60% of your portfolio in Campbell Soup and 40% in Boeing. The expected dollar return on your Campbell Soup stock is 3.1% and on Boeing is 9.5%. The standard deviations of their annualized daily returns are 15.8% and 23.7%, respectively. Assuming a correlation coefficient of zero, the portfolios expected rate of return will be the closest to:

A) 13.41%

B) 21.36%

C) 5.66%

D) 7.43%