Question: (a). A bearish collar (a hedging strategy that involves selling a put and buying a call) is always free to set up. TRUE or FALSE

(a). A bearish collar (a hedging strategy that involves selling a put and buying a call) is always free to set up.

TRUE or FALSE (briefly explain)

(b)Under the APT, the correlation between the returns of any pair of stocks is zero because firm-specific events of one company cannot affect another company.

TRUE or FALSE (briefly explain)

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