Preferred stock of Slow But Sure Inc., pays annual dividends of $1.98. These dividends are expected to continue into the indefinite future. What is the fair price of Slow But Sure's preferred stock if the required return on this stock is 12 percent?

	a.	$198.00
	b.	$165.00
	c.	$16.50
	d.	$19.80
	e.	None of the above

Alexis determines that the standard deviation of her SafeBet stock is 10% per year. She knows the standard deviation of a broad market index is 10% per year. If the correlation coefficient between SafeBet and the market index is 0.5, Alexis will find that, on average:

	a.	SafeBet provides a much greater return than the market for a given positive increase in market return
	b.	SafeBet's return will move by 1 percent when the market moves by 1 percent
	c.	SafeBet's return will move by 50 percent when the market moves by 1 percent
	d.	SafeBet's return will move by 0.5 percent when the market moves by 1 percent
	e.	SafeBet provides a reduction in negative returns when the market as a whole declines