There are two portfolios and a risk-free asset (Notes) Portfolio Expected return (%) Standard Deviation (%) A 5 10 B 6 20 7 Notes 2 0 rho(A,B) = 0.4, where rho is the correlation coefficient. Assume an investor that allocates 50% of her wealth to asset A, 20% of her wealth to the risk-free asset and the rest on asset B. What is the risk of such allocation (measured as the standard deviation)? Select one O 8.00% O None of the options provided O 9% O 6.00% O 12.00% O 11.00% The median P/E ratio of the Real Estate sector is above 50 in the USA while the median P/E ratio is around 20 for the Materials sector. Which sector do you think is overvalued? Select one: It cannot be determined since different sectors have different characteristics (leverage, growth rates, among other things) O Both materials and real estate O Materials