Read the following case and consider the question 1. Considering the effects of diversification, how should Sarah respond to the suggestion that you invest 100 percent of your 401(k) account in East Coast Yachts stock? 2. Sarah's response to investing your 401(k) account entirely in East Coast Yachts stock has convinced you that this may not be the best alternative. Because you are a conservative investor, you tell Sarah that a 100 percent investment in the bond fund may be the best alternative. Is it? 3. Using the returns for the Bledsoe Large-Cap Stock Fund and the Bledsoe Bond Fund, graph the opportunity set of feasible portfolios