1A) Which of the following asset classes would most likely have the highest standard deviation of returns?

	a.	High-yield corporate bonds
	b.	U.S. Treasury bonds
	c.	Corporate A-rated bonds
	d.	Mid-cap stocks

1B) Standard deviation is a measure of:

	a.	Total risk
	b.	Unsystematic risk
	c.	Systematic risk
	d.	Portfolio risk

1C) All of the following statements are true about diversification except for:

	a.	Diversification lowers both the expected return and risk of a portfolio.
	b.	Adding securities that are not perfectly correlated improve the risk/return profile of your clients portfolio
	c.	Diversification can help to eliminate individual company risk.
	d.	Diversification cannot eliminate systematic risk.

1D) What is the expected rate of return of the XYZ mutual fund if its one-year holding period returns over the last five years were: 5.2%, 9.5%, 11.6%, -12.5%, -3.5%

	a.	2.06%
	b.	8.46%
	c.	5.20%
	d.	10.30%