a) Define the type of security attack in each of following cases, either passive or active and why? i. A student breaks into a professor’s office to obtain a copy of the next day’s test.
ii. A student gives a check for $10 to buy a used book. Later he finds that the check was cashed for $100.
Consider the following covariances between stock ABC and stock XYZ:
ABC XYZ
ABC 0.484 0.255
XYZ 0.283 0.255
Calculate the variance on a portfolio that is made up of a $48,000 investment in stock ABC and a $32,000 investment in stock XYZ. Show all your calculations.