Section A (1 Mark)
The covariance of the market returns with the stocks returns is 0.008. The standard deviation of the market is
8% and standard deviation of stock's return is 11%. What is the correlation coefficient between stocks and market returns?

Section A (1 Mark)
Conventional theories presume that investors ____________ and behavioral finance presumes that they
____________.

Section A (1 Mark)
Company J and Company K each recently reported the same earnings per share (EPS). Company J's stock, however, trades at a higher price. Which of the following statements is most correct?

Section B (2 Mark)
Which of the following statements is/are correct?

Section B (2 Mark)
Which of the following statements are true?