1. You are considering investing in JR stock. Your stockbroker has informed you that the expected return of JR is 16%. Further information reveals that the standard deviation of JR is 8%. Based on the information provided, you believe (A) there is a 2.5% chance that the actual return of LBJ next year will be negative. (B) there is a 2.5% chance that the actual return of LBJ next year will be positive. (C) there is a 2.5% chance that the actual returns will exceed 32%. (D) there is a 32% chance that the actual return of LBJ next year will be outside 0% and 32%. (E) (a) and (d) are true. 2. An individual common stock has a beta of 0.9 and a correlation coefficient of 0.9. the expected return of the stock is 20%, and the standard deviation of its returns is 12%. If a risk-free asset has an expected return of 4%, then (A) the expected return on the market portfolio is 22%. (B) the market returns' standard deviation is 12%. (C) the beta of the market returns is 0.9. (D) both a) and b) are true. (E) both a) and c) are true