1. A mutual fund changes 6% front- end load and 1% operating and 12b> 1 expenses. At the beginning of the year, the fund has $100 million assets under management and 10 million shares outstanding. During the year the value of assets held by the fund increases by 12% and the fund receives dividends of $1 million. What is the funds NAV at end of the year? ( The number of mutual fund shares outstanding is still 10 million at the end of the year)

$11.09

B. $10.42

$11.19

$10

2. You have invested 60% of your portfolio in a stock with 48% standard deviation and the remaining in a stock with 32% standard deviation. The two stocks correlation is -0.1. What is the standard deviation of the portfolio?

22.66%

30.32%

31.52%

41.60%