pls ans all if not DO NOT take

1. The standard deviation of stock A is .60, while the standard deviation of stock B is .80. If the correlation coefficient for A and B is negative, then a portfolio that consists of 20% of stock A and 80% of stock B MUST have a standard deviation _________. Assume no short selling allowed.

   		Less than 0.5
   		Greater than 0.65
   		Greater than 0.5
   		Less than 0.65
   		Not enough information

2. Assume that a potential project has a 50% chance of doubling your initial investment in a year and a 50% chance of losing all your investment in a year. What is the standard deviation of the rate of return on this investment?

   		100%
   		30%
   		0%
   		50%
   		None of the above

3. As the number of stocks in a portfolio approaches infinity, ____ risk of the portfolio approaches ____.

   		Firm-specific; zero
   		Idiosyncratic; one
   		Systematic; infinity
   		Market; zero

4. Suppose that a stock portfolio and a bond portfolio have a correlation of 0. Which of the following must be true? [I] When stock price increases, bond price must decrease [II] It is possible to achieve diversification by combining the stock and bond portfolios [III] A zero variance portfolio can be formed by combing the stock and bond portfolios

   		I only
   		II only
   		I and II only
   		I and III only
   		I, II and III