You want to purchase GM stock at \$40 from your broker using as little of your own money as possible. If initial margin is 50% and you have \$4000 to invest, how many shares can you buy?

less than or greater than NAV with no apparent pattern

less than NAV due to loads and commissions

greater than NAV due to loads and commissions

less than NAV due to limited demand

greater than NAV due to excess demand

hedge funds are only subject to minimal SEC regulation

hedge funds are typically open only to wealthy or institutional investors

hedge funds are only subject to minimal SEC regulation, are typically open only to wealthy or institutional investors, fund managers can pursue strategies not available to mutual funds such as short selling, heavy use of derivatives, and leverage, and are commonly structured as private partnerships

hedge funds are commonly structured as private partnerships

hedge fund managers can pursue strategies not available to mutual funds such as short selling, heavy use of derivatives, and leverage

\$18.81

\$7.00

\$181.07

\$18.11

\$69.96

unit investment trusts

redeemable trust certificates

REITS

closed-end funds

open-end funds

2.65

4.75

1.95

3.54

2.39

the capital gain yield during the period, plus the inflation rate

the change in stock price

the dividend yield, plus the risk premium

the capital gain yield during the period, plus the dividend yield

the current yield, plus the dividend yield

None of these is correct

cannot be known with perfect certainty

can be calculated precisely with the use of advanced calculus

allow the advisor to create more suitable portfolios for the client

cannot be known with perfect certainty but they do allow the advisor to create more suitable portfolios for the client

will increase as the rate of return increases

will decrease as the rate of return increases

will decrease as the standard deviation decreases

will increase as the variance increases

will decrease as the variance decreases

assessing the effects of inflation

measuring the standard deviation of returns

understanding how returns increase relative to risk increases

analyzing returns on variable rate bonds

None of these is correct

all investors will have the same portfolio asset allocations

investors would perform vastly different levels of security analysis

investors will hold varying amounts of the risky asset in their portfolios

investors will hold varying amounts of the risk-free asset in their portfolios

investors will hold varying amounts of the risky asset and the risk-free asset in their portfolios