You are currently invested in Wheeler fund with expected return of 12% and volatility of 20% as well as risk-free treasuries with returns of 4%. Etcheverry fund has an expected return of 5%, volatility of 25% and CORRELATION of 0.15 with the original fund. 1/ What is the beta of Etcheverry fund with Wheeler fund? A. 0.120 B. 0.188 C. 0.096 D. 0.234

2/ What is the required return that makes Etcheverry fund an attractive addition to your portfolio? Will adding Etcheverry fund improve your portfolio? A. Required Return = 5.5%, adding Etcheverry will not improve your portfolio B. Required Return = 5.5%, adding Etcheverry will improve your portfolio C. Required Return = 4.19%, adding Etcheverry will improve your portfolio D. Required Return = 4.19%, adding Etcheverry will not improve your portfolio