QUESTION 18 1. The value of the Geometric Mean Rate of return depends on the interim stock prices. C C True False QUESTION 21 1. Let a portfolio that consists of two assets, risky stock A and riskless asset F. Also let the invested wealth be equally divided among those two assets. That is, wa= we= .5. If the standard deviation of stock A (0) increases by one percent (1%), then the standard deviation of the two asset portfolio (op) will Ca. will b. increase by 1% c. increase C by 0.5% e decrease by 1% d. None of C the answers is correct will decrease by 0.5% Cf. will stay the same QUESTION 25 1. All else equal if the expected rate of return on a stock that is part of a well diversified portfolio increases by 1%, the expected rate of return on that portfolio will also increase by 1% C C True False