Assume you purchased 200 shares of GE common stock on margin at $70 per share from your broker. If the initial margin is 55%, how much did you borrow from the broker?

front-end loads and back-end loads

12b-1 charges

front-end loads, back-end loads, and 12b-1 charges

back-end loads

front-end loads

5

6

7

8

1

E(r) = 0.20; Standard deviation = 0.15

E(r) = 0.15; Standard deviation = 0.10

E(r) = 0.10; Standard deviation = 0.10

E(r) = 0.15; Standard deviation = 0.20

E(r) = 0.10; Standard deviation = 0.20

0.8000

Cannot be determined

0.3095

0.41667

0.4667

E(rC) = 7.2 + 3.6 * Standard Deviation of C

E(rC) = 0.2 + 1.167 * Standard Deviation of C

E(rC) = 3.6 + 1.167 * Standard Deviation of C

E(rC) = 3.6 + 12.0 * Standard Deviation of C

E(rC) = 3.6 + 0.857 * Standard Deviation of C

invest only in risky securities

such a portfolio cannot be formed

lend some of her money at the risk-free rate and invest the remainder in the optimal risky portfolio

both borrow some money at the risk-free rate and invest in the optimal risky portfolio and invest only in risky securities

borrow some money at the risk-free rate and invest in the optimal risky portfolio

The portfolio with 20 percent in A and 80 percent in B, and the portfolio with 15 percent in A and 85 percent in B are both on the efficient frontier

The portfolio with 20 percent in A and 80 percent in B

The portfolio with 15 percent in A and 85 percent in B

The portfolio with 26 percent in A and 74 percent in B

The portfolio with 10 percent in A and 90 percent in B

0.40; 0.60

0.66; 0.34

0.77; 0.23

0.23; 0.77

0.34; 0.66

None of these is correct

The point of tangency with the opportunity set and the capital allocation line

The point of tangency with the indifference curve and the capital allocation line

The point of highest reward to variability ratio in the opportunity set

The point of the highest reward to variability ratio in the indifference curve

Only portfolio X cannot lie on the efficient frontier

Only portfolio W cannot lie on the efficient frontier

Only portfolio Y cannot lie on the efficient frontier

Cannot tell from the information given

Only portfolio Z cannot lie on the efficient frontier