1. A long position in a stock is all of the following except:
A) Provides a loss when the stock falls
B) Provides a profit when the stock rises
C) The most common way to buy stock
D) Used to take advantage of expected declines in a stock's price
2. An efficient portfolio has an expected return of 20% and a standard deviation of 14%. Another efficient portfolio has an expected return of 40% and a standard deviation of 28%. The market portfolio has an expected return of 25%. Based on this, the standard deviation of the market portfolio is:
14.0%
19.5%
21.5%
25.0%