For the next 4 questions suppose the following holds:

Suppose the security I and security J have the following historical returns:

Year	rI	rJ
2001	20%	40%
2002	29	36
2003	-12	-25

What is the (arithmetic) average return on security I?

9.17%

12.33%

13.00%

14.18%

15.52%

1 points

QUESTION 2

What is the standard deviation of the return on security I? (Use n-1 for the denominator.)

9.09%

17.39%

20.82%

21.55%

25.18%

1 points

QUESTION 3

Suppose you invest 50% of your money in I and the rest in J to form a portfolio P. What is the average return on portfolio P?

9.17%

11.33%

13.15%

14.67%

17.00%

1 points

QUESTION 4

What is the standard deviation of the return on portfolio P? (Use n-1 for the denominator.)

9.09%

17.39%

25.82%

28.75%

29.02%