You have invested only in the BlueChip Fund, a mutual fund that invests mainly in stocks. At the moment, the Blue Chip Fund has an expected return of 34% and a volatility of 15%. Your broker suggests you to consider adding the Platinum Fund to your current portfolio. The Platinum Fund has an expected return of 8%, a volatility of 24%, and a correlation of 0.25 with the BlueChip Fund. Risk-free interest rate is equal to 5%. The difference between the expected return and the required return on the Platinum Fund is closest to: 0 -0.306 O 0.172 O 0.085 0 -0.086 Question 10 Which of the following statements on the profitability index is FALSE? O A. Ranking projects by the profitability index, you should firstly select the project with the lowest index value and proceed down the list until the constrained resource is consumed. OB. The profitability index measures the value created in terms of Net Present Value (NPV) per unit of resource consumed. OC. The profitability index rule should not be used if more than one of the company's resources are simultaneously constrained OD. In the presence of a constrained resource, choosing the highest NPV project might not lead to the best decision