What is the difference between writing a covered and a, Financial Management

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What is the difference between writing a covered and a

1. What is the difference between writing a covered and a naked call option? Do you think naked options are more of an investment or purely used for speculation? Please support your reasoning

2. Calculate the expected rate of return using the CAPM where the expected return on the market is 5%, the risk free rate is 1%, and the beta is 1.5.

3. Why would an investor want to hedge their equity portfolio? Why not simply close out the position?

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