12) Consider the following probability distribution for stocks A and B: The expected rates of return of stocks A and B are ________ and ________, respectively.

State	Probability	Return on Stock A	Return on Stock B
1	.10	10%	8%
2	.20	13%	7%
3	.20	12%	6%
4	.30	14%	9%
5	.20	15%	8%

A) 13.2%; 9% B) 14%; 10% C) 13.2%; 7.7% D) 7.7%; 13.2%

13) Which one of the following portfolios cannot lie on the efficient frontier as described by Markowitz?

Portfolio	Expected Return	Standarad Deviation
a	10%	12%
b	5%	7%
c	15%	20%
d	12%	25%

A) Only portfolio A cannot lie on the efficient frontier. B) Only portfolio B cannot lie on the efficient frontier. C) Only portfolio C cannot lie on the efficient frontier. D) Only portfolio D cannot lie on the efficient frontier. E) Cannot tell from the information given.