1. A Risky Portfolio has an expected return equal to 14.25% and a standard deviation equal to 45%. The risk-free rate is 3%. Find the rate of return for a Complete Portfolio with a standard deviation of 20%.
A) 8.0%
B) 8.25%
C) 8.65%
D) 9.3%
2. Which of the following is true for the writer of a put option?
a) The maximum loss is limited to the strike price
b) The gain or loss is equal to the gain or loss of the buyer of a put option
c) The maximum gain is the amount of the premium
d) All of the above are true