Based on the following tables, does the portfolio $0\mathrm{.}5$ invested into AAPL and $0\mathrm{.}5$ invested into BA lie

on the Efficient Frontier?

$Rf=,0\mathrm{.}200\%$

A$.$ Yes

B$.$ No

C$.$ Can not tell

D$.$ Depends on your risk aversion

You have $$130,000$ portfolio invested into a broad Market Index Fund $($SPY$).$ You have received a

$$25,000$ gift from your parents. Now you are trying to decide should you invest the $$25,000$ into

ABC Co$.$ stock or XYZ Co$.$ Stock. ABC and XYZ had surprisingly similar performance except for

the covariance and correlation with SPY$.$

Which stock would add greater benefit of diversification to your current portfolio holdings?

A$.$ ABC stock

B$.$ XYZ stock