1. What is the standard deviation of a portfolio of two stocks given the following data:sin has a standard deviation of 20%. Stock B has a standard deviation of 16%. The portfolion 30% of stock A, and the correlation coefficient between the two stocks is 0.4 . A. 21.23% B. 18.17% C. 12.34% D. 14.67% 2. If CAPM is correct, which of the following is an efficient portfolio? A. 100% of one's wealth invested in the market portfolio. B. 20% of one's wealth invested in the market portfolio and 80% invested in the T-bills. C. 40% invested in the T-bills and 60% invested in Microsoft stock. D. A, B and Care all correct. E. Both A and B are correct. 3. You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 6% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 55% and 45%, respectively. X. an expected rate of return of 12%, and Y has an expected rate of return of 16%. To form: complete portfolio with an expected rate of return of 20%, you should A. Borrow $795 at the risk free rate B. Invest $795 in the T-bills C. Invest $560 in the risky portfolio P and $440 in the T-bills. D. Invest $250 in the risky portfolio P and $750 in the T-bills