All else equal, is a call option on a stock with a lot of firm-specific risk worth more than one on a stock with little firm-specific risk? The betas of the two stocks are equal.

If markets are efficient then: All stocks will have the same expected returns All stocks will have the same risk Two stocks will the same volatility will have the same expected returns Two stocks with the same priced risks will have the same expected returns

This is a general question and no specific numbers are required: You have two stocks and you have calculated the return on the relevant riskless assets for this market. What would the reasons be for choosing one asset over the other and explain why?

Let's explore the difference between "expected" and "actual" return of a stock. 1) How might we calculate what the expected return of a stock should be? 2) How might we calculate the "actual" return of a stock?

Explain in your own words what dynamic hedging is, and how a trader could profit by dynamically hedging an option if they have a forecast of volatility that is different to implied volatility.

this is one question with two parts, could you have it answered please

Stocks A and B have the same price and are in equilibrium, but Stock A has the higher required rate of return. Which of the following statements is CORRECT? a. Stock B must have a higher dividend yield than Stock A. b. Stock A must have a higher dividend yield than Stock B. c. If Stock A has a higher dividend yield than Stock B, its expected capital gains yield must be lower than Stock B's. d. Stock A must have both a higher dividend yield and a higher capital gains yield than Stock B. e. If Stock A has a lower dividend yield than Stock B, its expected capital gains yield must be higher than Stock B's.

Based on the CAPM​ model, a stock with a negative beta has which of the following​ characteristics?   A. An expected return less than zero.   B. An expected return equal to the​ risk-free rate.   C. Since these are so​ rare, the CAPM model does not account for negative beta stocks.   D. An expected return less than the​ risk-free rate.