1. In your portfolio you have invested 30% and 70% in Stock X and Stock Z, respectively. The standard deviation of X is 12%. The standard deviation of Z is 9%. The correlation between X and Z is 0.60. Calculate the portfolio standard deviation. 2. If stock price is $40. Last year's earning is $4 million. The firm has 2 million shares outstanding. What is the price-earning ratio? In general, what does it suggest of a firm? 3. Show the difference between fundamental analysis and technical analysis. Give examples. 4. Why was Sarbanes-Oxley Act enacted? Give an example of this Act. 5. What is short selling? How does short selling help a financial market? 6. What is Leveraged Buyout (LBO)? When is it likely to happen? 7. How does the industry condition influence the price of a stock in the IPO? Explain in details. 8. Compare between CAPM and APT. 9. Luckin Coffee, Inc. (ticker symbol is LK in yahoo finance) very recently misled the market with wrong information and the stock price tanked overnight. Write a report on that using your own thoughts. 5 Points