The covariance between the return on Apple stock and the S&P 500 is 0.12. The variance of the return on the S&P 500 is 0.09. Apple stock is: a. Riskier than the market b. Less risky than the market C. As risky as the market d. Expected to have a good return when the market is doing poorly e. None of the above 25. Bookaccino's Pic wants to acquire Book Cellar Plc. Shares in Bookaccino's are currently trading at £5.00 each and shares in Book Cellar are trading at £2.40 each. Bookaccino's is offering 5 of its ordinary shares for ten shares in Book Cellar. What does this imply that Bookaccino's values shares of Book Cellar at? a. £2.40 b. £2.50 C. £5.00 d. £7.40 e. None of the above I
