A, According to the mean-variance criterion, which one of the following investments dominates all others?

		E(r) = 0.20; Variance = 0.50
		E(r) = 0.30; Variance = 0.50
		E(r) = 0.30; Variance = 0.40
		E(r) = 0.20; Variance = 0.40
		None of these options dominates the other alternatives.

B. Consider the single-index model. The alpha of a stock is 3%. The return on the market index is 10%. The risk-free rate of return is 3%. The stock earns a return that exceeds the risk-free rate by 11%, and there are no firm-specific events affecting the stock performance. The of the stock is

		0.75.
		1.14.
		1.57.
		None of the options
		1.33.