QUESTION 1

When an ETF has an R-squared of 99 relative to the benchmark, this means that:

99% of the returns on the ETF depend on the benchmark

99% of the returns on the benchmark depend on the ETF

The return on the ETF is 99% better than the benchmark

The ETF and the benchmark are not closely related

QUESTION 2

If you have a portfolio of Starbucks, Amazon, and Tesla which of the following should you add to the portfolio to maximize diversification?

		Waste Management
		Target
		Nike
		Home Depot