A foreign key is one or more columns in one relation that also is the primary key in another table

Surf and Spray Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the

market risk premium is 7.5%, the risk-free rate of return is A) 2.0%. B) 3.4%. C) 1.5%. D) 4.1%.

Alan just bought 100 shares of Global, Inc. (GLO) at $45 per share and as protection he also bought a three-month put with a $45 strike price at a cost of $400

One of two scenarios is expected to occur in the next three months: (a) GLO stock declines to $33; and (b) GLO stock rises to $61. Calculate the profit or loss under each scenario and explain how the hedge has provided protection for Alan's position in GLO. Ignore transaction costs. What will be an ideal response?