1. 8.1 Given the following information:
   • Standard deviation for stock X = 12 percent
   • Standard deviation for stock Y = 20 percent
   • Expected return for stock X = 16 percent
   • Expected return for stock Y = 22 percent
   • Correlation coefficient between X and Y = 0.30

   The covariance between stocks X and Y is:

   1. 0.048
   2. 72.00
   3. 3.60
   4. 105.6
2. 8.2 Given the information in Problem 8.1, the standard deviation for a portfolio consisting of 50 percent invested in X and 50 percent invested in Y is:
   1. 19 percent
   2. 16 percent
   3. Less than 16 percent
   4. More than 22 percent
3. 8.3 Given the information in Problem 8.1, assume that the correlation between stocks X and Y is +1.0. Choose the investment below that represents the minimum-risk portfolio:
   1. 100 percent investment in stock Y
   2. 100 percent investment in stock X
   3. 50 percent investment in stock X and 50 percent in stock Y
   4. 80 percent investment in stock Y and 20 percent in stock X
4. 8.4 Assume your aunt is approaching retirement. Her retirement assets include her house and Social Security payments. She also has a 401(k) plan representing one-third of her assets. If she wants to own some foreign securities and decides to invest 75 percent of her 401(k) assets accordingly, what percentage of her total assets will this constitute?