Holly gathers the following data about mutual funds. The risk-free rate is 8%.

Mutual fund	Return (%)	Standard Deviation (%)
P	22	27
Q	28	35
R	26	30
S	24	29

Holly would prefer mutual fund:

A portfolio is invested 70% in Asset A with the remainder invested in Asset B. Asset A has an expected return of 10% and variance of returns of 0.0576, while Asset B has an expected return of 18% and variance of returns of 0.1024. The covariance between the returns of the two assets is 0.0461. The standard deviation of returns for the portfolio is closest to:

A.

0.37

B.

0.24

C.

0.15

D.

0.32

Consider two perfectly negatively correlated risky stocks EY and DZ. EY has an expected rate of return of 13% and a variance of 0.1521. DZ has an expected rate of return of 8% and a variance of 0.0169. The risk-free portfolio that can be formed with the two stocks will earn _____ rate of return.

A.

10.83%

B.

12.44%

C.

9.25%

D.

11.68%

A T-bill quote sheet has 90-day T-bill quotes with a 4.55 bid and a 4.46 ask. If the bill has a $10,000 face value, an investor could sell this bill for _______ to a dealer.

A.

$9,809.16

B.

$9,872.50

C.

$9,857.42

D.

$9,886.25

help pls