11. Stock A has an expected return of 12 percent, a beta of 1.2, and a standard deviation of 20 percent. Stock B has an expected return of 10 percent, a beta of 1,2, and a standard deviation of 15 percent. Portfolio P has $900,000 invested in Stock A and $300,000 invested in Stock B. The correlation between Stock A's returns and Stock B's returns is zero (that is, r = 0). Which of the following statements is most correct? * O a) Portfolio P's expected return is 11.5 percent. Ob) Portfolio P's standard deviation is 18.75 percent O c) Portfolio P's beta is less than 12. O d) Statements a and b are correct. Oe) None of the above 12. M&M Fund has purchased a bond with 8 years remaining until maturity and a $1,000 face value. The bond is currently selling at a price of $950. The bond offers 9% coupon rate with interest paid annually. The bond may be called in 4 years at a call price of $1,060. What is the bond's yield to maturity (YTM)? O a. 9.87% O b. 11.69% O c.7.87% d. 5% O e. None of the above