31) Stock X has a standard deviation of return of 10 percent. Stock Y has a standard 31) Storiation of return of 20 percent. The correlation coefficient between the two stocks is 0 5. If you invest 60 percent of your funds in stock X and 40 percent in stock Y, what is the standard deviation of your portfolio? A) 10.3 percent B) 21.0 percent 9 12.2 percent D) 14.8 percent 32) The capital asset pricing model (CAPM) states which of the following? A) The expected rate of return on an investment is determined entirely by the risk-free 32) rate. B) The expected rate of return on an investment is determined entirely by the risk-free rate and the market rate of return. 9 The expected rate of return on an investment is proportional to its beta. D) The expected risk premium on an investment is proportional to its beta