Q7: Stock P has an alpha of 0.08, a Beta of 0.95, and residual variance of 17. The variance of the market return is 13.50. The proportion of market risk to total risk (i.e. the R2) for Stock P is: a) 40.75% b) 41.75% c) 42.75% d) 43.75%

Q8: You are long 12,500 call options written on MOOTS INC stock with a strike price of $88.00; with each contract costing $4.70. If the stock price at maturity is $95, what is the profit on your position? a) -$28,750 b) -$2.30 c) $2.30 d) $28,750