1. Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.
2. Alison bought a popular mutual fund where its NAV was at $9.35. A year later the NAV is at $10.92. The total return for this fund from her annual statement showed that the fund gained 18.5% for the year. what percentage of this gain is attributable to dividends and capital gains distribution for the fund?