Please answer each of the following questions in detail and provide in-text citations in support of your argument. Include examples whenever applicable. Make sure to provide examples for each of the questions below.

1. Explain the criteria for assessing performance of a security, namely, expected rate of return, standard deviation of rate of return, and coefficient of variation (CV). Explain how by forming a portfolio an instrument can be generated that has properties better than each of its constituents in terms of the standard deviation of rate of return and CV.