True or False?

1.Stock As expected return is 10% and the s.d. 8%. Stock Bs expected return is 20% and the s.d. 10%. If the nave (50-50) portfolio has a s.d. of 9%, the rates of return of the two stocks must be perfectly negatively correlated.

2.Stock As expected return is 15% and the s.d. 8%. Stock Bs expected return is 10% and the s.d. 5%. The trivial portfolio consisting entirely of stock B must be efficient.