18 a) Mike and Sarah want to reduce the market risk of their portfolio but stay 100% invested in their current long stock positions? What could they do to accomplish this goal?

b) Sarah likes to buy stocks that are trading two standard deviations cheap on price earnings relative to five year averages. This strategy is based on what key concept? Is it a GARP, value or momentum based strategy?

c) What are two metrics to value cyclical stocks that are losing money on the bottom line? What are the pros and cons of these metrics?