Sarah has completed some risk & return calculations for a portfolio that contains two assets, X and Y. She found that the portfolio had zero variance but both individual assets, X and Y, had positive standard deviations. Which of the following is FALSE?

	The two assets' returns must have a perfectly negative correlation.
	The portfolio has a zero standard deviation.
	One of the two assets in this portfolio must be a riskless asset.
	The portfolio exhibits strong diversification effects.
	None of the above

What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $10,000 at year 1, and $30,000 at year 2, 3, 4, and 5?

	6.90%
	7.20%
	8.40%
	9.00%
	None of the above