2. Consider a two asset portfolio consisting of risky stocks A and B:

Stock A: E[rA] = 15% s.d.A = 9%

Stock B: E[rB] = 10% s.d.B = 7%

a. A trivial portfolio consisting solely of Stock A must be inefficient.

b. A trivial portfolio consisting solely of Stock B must be efficient.

c. A trivial portfolio consisting solely of Stock A must be efficient.

d. A trivial portfolio consisting solely of Stock A may be efficient or inefficient depending on the correlation of the stocks' returns.