1.A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 23%, while stock B has a standard deviation of return of 17%. Stock A comprises 70% of the portfolio, while stock B comprises 30% of the portfolio. If the variance of return on the portfolio is .040, the correlation coefficient between the returns on A and B is _________.

2.Treasury bills are paying a 3% rate of return. A risk-averse investor with a risk aversion of A = 2 should invest entirely in a risky portfolio with a standard deviation of 20% only if the risky portfolio's expected return is at least ______.

3.An investor purchases a long call at a price of $3.45. The exercise price is $54. If the current stock price is $54.10, what is the break-even point for the investor?