11A) WaterMark common stock does not pay dividends. Its current price is $25.41 per share. Using the last 5 years of daily trading prices, you have computed the stocks daily volatility to be 5.68%. Determine the stocks annualized variance. Express your answer, as a percentage, not as a decimal, with at least 4 digits of precision

B) As the number of assets contained within an investment portfolio increases, say, from 3 to 10 assets, what typically occurs?

(1) The level of total risk remains constant, but the proportion of idiosyncratic risk to total risk declines.

(2) The level of total risk declines, but the level of portfolio-specific risk increases.

(3) The level of idiosyncratic risk declines, but the level of systematic risk increases.

(4) The level of total risk declines, but the level of systematic risk increases.

(5) More than one of the above are true.

(6) None of the above are true.

Enter a value from 1 to 6 to reflect your answer.