As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation? a) It decreases at an increasing rate. b)It increases at an increasing rate. c) It first decreases rapidly, then starts to decrease slowly as more securities are added. d) It decreases at a constent rate e) It increases at a decreasing rate. You put 80% of your money in a stock portfolio that has an expected return of 12% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6.5% and a standard deviation of 12%. The stock and bond portfolios have a correlation of 3. What is the standard deviation of the resulting portfolio? a) 16.5% b) 18.6% c) 17.3% d) 19.4% e) 20.1% Based on the outcomes in the following table, choose which of the statements below is (are) correct? ScenarioSecurity A Security B Security C RecessionReturn>E(r) Return-E(r) ReturnE(r) . The correlation between securities A and C is positive. Il. The correlation between securities A and C is negative. III. The correlation between securities B and A is positive. IV. The correlation between securities B and C is O. a) and IlI b) Il and IV only C)Il and lll only d) I only e) , II, and IV