Q. Equities have an annual standard deviation of return of 15%. What is the 20-year standard deviation for a portfolio with 40% in treasuries and 60% in equities? Q. If the risk-free rate is 0, and the annual expected return on stocks 10% with a standard deviation of 20%, What is the proper expression for determining the maximum allocations to stocks, X, where the lower bound for a 90% confidence interval for a 10-year holding period (multiplier-2) is less than the initial investment A. (14.1%)10.2[10 * X (20)] >0 B. (1+.1X20-1-210*X+0.04)]"2>0 C. (1..1X)10 - 2[10*XC.04)]^2>0 D. (14.1%)10 -1 -2[10X (20)] >0 Q. Which of the following statements regarding asset allocation is true? A An individual's optimal asset allocation is the combination of the riskless asset and optimal risky portfolio that maximizes their expected return. B. The indifference curves for a risk-neutral individual are downward sloping C. When a riskless asset is available the optimal risky portfolio is independent of risk aversion. D. All of the above statements are true