The standard deviation of the market is 15 and the standard


1. A stock has a covariance with the market of 0.00985. The standard deviation of the market is 15% and the standard deviation of the stock is 21%. What is the stock's beta?

2. Suppose you own a stock worth $65. You sell a call X = $70 and you buy a put X = $60. What have you accomplished?

3. A stock has a covariance with the market of 0.00985. The standard deviation of the market is 15% and the standard deviation of the stock is 21%. What is the stock's beta?

A.   1.000

B.   0.438

C.   0.313

D.   0.066

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Financial Management: The standard deviation of the market is 15 and the standard
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