You are a new investor and are creating your first portfolio. You are considering a portfolio of two assets 1) an SP500 index ETF and 2) Treasury Bills. If you allocate 10% to Treasury bills and the rest to the SP500 index ETF, how might you expect this portfolio to perform ?

Multiple Choice

There is not enough information to determine how this portfolio will respond.

On a down day in the market, your portfolio should gain in value

On an up day in the market, your portfolio should precisely mirror the stock market's return

the riskiness of your portfolio exceeds that of the stock market.

On a down day in the market, you expect your portfolio will fall less than the overall stock market declines