Question 4 0/1 point You put 80% of your money in a stock portfolio that has an expected return of 10% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of.2. What is the standard deviation of the resulting portfolio? a) 18.63% b) 21.99% c) 19.82% d) 17.3% e) 20.12% 0/1 point Question 7 Efficient portfolios of N risky securities are portfolios that a) have the lowest standard deviations and the lowest rates of return. b) have the highest risk and rates of return. c) have the highest rates of return for given level of risk. d) are selected from those securities with the highest returns regardless of their standard deviations e) are formed with the securities that have the highest standard deviations regardless of their returns. Question 8 0/1 point If the correlation between the returns of two stocks are less than one, the standard deviation of the portfolio formed using the two stocks a) will be greater than the weighted average of the individual security standard deviations. b) will always be equal to the securities' covariance. c) will be equal to the weighted average of the individual security standard deviations. 0 d) will be less than the weighted average of the individual security standard deviations. e) will be less than or equal to the weighted average of the individual security standard deviations. 0/1 point Question 12 Based on the outcomes in the following table, choose which of the statements below is (are) correct? Scenario Security A Security B Security C Recession Return>E(PA) Return=E(re) Return>E(rc) Normal Return=E(A) Return=E(r) Return=E(rc) Boom Return