1. Prof. Kung is looking to you for investment advice and which stock she should add to diversify her current portfolio. Using what you've learned this semester, what can you advise on the following security options. The market correlation is 0.5.

   	Variance		Correlation
   Security BRAVO	44.7%	20%
   Security VH1	63.2%	40%
   Market		70%	0.5

   	a.	BRAVO has greater total risk, but less systematic risk
   	b.	VH1 was higher risk premium and a greater return, despite having less total risk
   	c.	BRAVO has lower total risk and higher systematic risk
   	d.	VH1 has greater total risk and higher systematic risk