1. A long position in a stock is all of the following except:

A) Provides a loss when the stock falls

B) Provides a profit when the stock rises

C) The most common way to buy stock

D) Used to take advantage of expected declines in a stock's price

2. An efficient portfolio has an expected return of 20% and a standard deviation of 14%. Another efficient portfolio has an expected return of 40% and a standard deviation of 28%. The market portfolio has an expected return of 25%. Based on this, the standard deviation of the market portfolio is:

14.0%

19.5%

21.5%

25.0%