1. The geometric average of -12%, 20%, and 25% is _________.

1. 8.42%

2. 11%

3. 9.7%

D. 18.88%

2. What is the standard deviation of a portfolio of two stocks given the following data: Stock A has a standard deviation of 18%. Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A, and the correlation coefficient between the two stocks is -.23.

1. 9.7%

2. 12.2%

3. 14%

4. 15.6%