Reference no: EM133068249

QUESTION 1: Assume you buy 100 shares of IBM common stock on margin at $125 per share. If the initial margin is 60%, what is the amount that you put in?

QUESTION 2: The price of a stock is $35 at the beginning of the year and $34 at the end of the year. If the stock paid a $2 dividend, what is the holding-period return for the year?

QUESTION 3: If the nominal rate of return on investment is 6% and inflation is 1% over a holding period, what is the real rate of return on this investment?

QUESTION 4: The geometric average of -5%, 8%, and 12% is _________.

QUESTION 5: I bought a zero coupon bond for $700 in 2016. The bond had a face value of $1000, and at the time of my purchase, the bond had 10 years until maturity. I sold the bond 3 years later in 2018 for the price of $768. What was the closest to the annualized holding period return of this investment?

QUESTION 6: Assume you purchased 200 shares of XYZ common stock on margin at $100 per share from your broker. If the initial margin is 70%, the amount you borrowed from the broker is _________.

QUESTION 7: You borrowed 100 shares of IBM from your broker and sold them at the price of $145 per share. You put in $8700 in cash buffer. The broker charges an interest rate of 10% per year on the stock loan. One year later, you bought back the 100 Intel shares to return to your broker. At that time, the price per share is $138. The return of this trade