A portfolio is composed of two stocks, A and B. Each stock has an expected return of 15%. For Stock A, the standard deviation of the rate of return is 20%. For Stock B, the standard deviation of the rate of return is 30%. Stock A comprises 40% of the portfolio while Stock B comprises 60% of the portfolio. What is the standard deviation of return for the portfolio if the correlation coefficient between the returns for A and B is 0.5 ? 5.3% 23.1\% 27.4% 45.4% The Sharpe ratio takes risk into account while the Treynor ratio takes risk into account. unique, market market, total total, market market, unique Consider a no-load mutual fund with a beginning of year NAV of $100 /share and an end of year NAV of $102 /share. During the year investors have received income distributions of $2/ share, and capital gains distributions of $1/ share. The fund had liabilities at the end of the year of $1/ share and an operating expense ratio of 1%, what is the rate of return of the fund for the year? 2.0% 3.0% 4.0% 5.0%