Use the following information to determine which of the statements (might be more than one), that are below the table, is correct.

	Stock 1	Stock 2	Stock 3	Risk-free asset	Portfolio I
Expected return	20%	25%	10%	5%	15%
Standard deviation	3.45%	4.76%	1.89%	0.00%	2.66%

Portfolio I was formed equally-weighting the 3 stocks and the risk-free asset.

Question 21 options:

	If you want to increase the standard deviation of the portfolio, you would need to invest less in stock 3, in the risk-free asset, or in both.
	If you want to decrease the standard deviation of the portfolio, you would need to invest less in stock 3, in the risk-free asset, or in both.
	If you want a portfolio with a standard deviation higher than 3.50%, you would need to invest more than 25% in stock 2
	If you want a portfolio with a standard deviation lower than 1.50%, you would need to invest more than 25% in stock 3