please answer the following three questions

Thank you

FIN42040 Tutorial 2 - Microsoft Word E 21 c . 1 Normal Title Emphasis Subtle Em 1 No Spaci.. Subtitle Intense E Heading 1 Heading 2 Styles v! 3. During a period of severe inflation, a bond offered a nominal HPR of 80% per year. The inflation rate was 70% per year. a. What was the real HPR on the bond over the year? b. Compare this real HPR to the approximation r R-i. 4. MCQ- Diversification among assets improves the opportunities faced by all risk-averse investors a. irrespective of the correlation coefficients b. only if correlations are not larger than zero c. only if the assets have similar variances d. for assets with relatively large variances e. none of the above 5. MCQ - If the returns on different assets are uncorrelated a. an increase in the number of assets in a portfolio may bring the standard deviation of the portfolio close to zero b. there will be little gain from diversification c. diversification will result in risk averaging but not in risk reduction the expected return on a portfolio of such assets should be zero