1)Which of the following risks could not be minimized via adequate diversification?

A.A change in the manner in which the U.S. taxes capital gains on stocks

B.The current risk appetite of the average investor

C.The fate of the global fossil fuel producing industries

D.A decision by the European Central Bank to raise interest rates

2.Over the course of a year, your portfolio returned 8%, with an annualized volatility of

15%.The average inflation rate and risk free rate for that year were 1.5% and 1%, respectively.The Sharpe ratio of your portfolio for that year was approximately:

A..37

B..43

C..47

D..53