1. What is the standard deviation of a portfolio of two stocks g Stock A has a standard deviation of 20%. Stock B has a standard deviation of portfolio contains 50% of stock A, and the correlation coefficient between the is 0.3. A. 14.56% . The two stocks B. 12.2% C. 8.95% D. 15.6% 2. Asset A has an expected return of 15% and a return standard deviation of 14%. Asset B has an expected return of 20% and a return standard deviation of 24%. The return on the risk-free asset is 7%. If a risk-averse investor can only pick one risky asset to hold in conjunction with the risk-free asset, which one would he pick? A. asset A B. asset B C. He is indifferent between asset A and asset B. D. The answer cannot be determined from the data given. 3. Sara is more risk averse than Brian. Which of the following statements is true? A. Sara's optimal risky portfolio will have a lower standard deviation compared to that of Brian's B. Sara and Brian will pick the same optimal risky portfolio. C. Sara's optimal complete portfolio has a higher Sharpe ratio than that of Brian's. D. Compared to Brian, Sara puts a smaller fraction of her total investment money into the risk-free asset