1. The return pattern on your favorite stock has been 5%, 8%, -12%, 15%, 21% over the last five years. What has been your holding period return over the last 5 years?

a.		38.9%
b.		34.5%
c.		33.3%
d.		13.4%

2.

When considering a diversified portfolio, which of the following is an appropriate measure of risk

a.		standard deviation
b.		beta
c.		both standard deviation and beta
d.		covariance