10. A portfolio manager is tasked with constructing an equally weighted, two-asset portfolio of stocks and bonds. He gathers the following information about expected return, standards deviation, and correlation: Asset Stocks Bonds E(r) 12% 6% Standard deviation 20% 9% Correlation -0.3 If the correlation between the stocks and bonds changed to zero, the standard deviation of the portfolio would: A. B. C. Increase. Decrease. No change. 11. A risk-averse investor's indifference curve plots the risk-return combinations that: A. B. C. Hold utility constant. Maximize utility. Minimize utility. 12. The capital allocation line tangent to the efficient frontier of risky assets results in the: A. B. C. Optimal risky portfolio. Maximum return portfolio. Global minimum variance portfolio