Assume you sell short 100 shares of common stock at \$45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at \$40/share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.

You purchased 100 shares of IBM common stock on margin at \$70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

Which one of the following statements regarding closed-end mutual funds is false?

If a portfolio had a return of 10%, the risk free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be_____.

When an investment advisor attempts to determine an investor's risk tolerance, which factor would they be least likely to assess?

You invest \$1000 in a risky asset with an expected rate of return of

0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of

0.04. A portfolio that has an expected outcome of \$114 is formed by

The expected rate of return and standard deviation of the global minimum variance portfolio, G, are ________and _______, respectively.

Consider the following probability distribution for stocks A and B: The variances of stocks A and B are _________and _______, respectively.

For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?

A Treasury bill with a par value of \$100,000 due one month from now is selling today for \$99,010. The effective annual yield is .

A Treasury bond due in one year has a yield of 5.7%; a Treasury bond due in 5 years has a yield of 6.2%. A bond issued by Ford Motor Company due in 5 years has a yield of 7.5%; a bond issued by Shell Oil due in one year has a yield of 6.5%. The default risk premiums on the bonds issued by Shell and Ford, respectively, are