The price that the buyer of a call option pays for the underlying stock if she executes her option in six months is called the a strike price or exercise price b. premium c stock price in six months d. current stock price QUESTION 9 Stocks A and Beach have an expected return of 9%, a standard deviation of 20%, and a beta of 1.2. The retums on the two stocks have a correlation coefficient of 0.8. Your portfolio consists of 50% A and 50% B. Which of the following statements is CORRECT? a. The portfolio's standard deviation is greater than 20% b. The portfolio's bota is less than 12. c. The portfolio's expected return is less than 9% d. The portfolio's beta is equal to 1.2 QUESTION 10 "A 10-year 8% coupon bond that has par value of $1,000 and is selling today at $1,090. What's the band's yield to maturity? a. 0.0862 b. 0.0800 c 0.1200 d. 0.0673