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Jeremy owns a stock that has historically returned 9.6% annually with a standard deviation of 11.3%.

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5. Jeremy owns a stock that has historically returned 9.6% annually with a standard deviation of 11.3%. There is only a 0.5% chance that the stock will produce a return greater than ________ % in any one year.;9. Alfonso purchased 600 shares of Crosswinds, Inc. stock on 60% margin when the stock was selling for $37. a share. The stock is currently selling for $32. a share. What is his current equity position?;10. You purchased 800 shares of stock for $49.20 a share. The initial margin requirement is 65% and the maintenance margin is 35%. What is the lowest the stock price can go before you receive a margin call?;11. You purchase 500 shares of stock on margin at a cost per share of $22. The initial margin requirement is 60% The effective interest rate on the margin loan in 6.4% How much interest will you pay if you repay the loan amount in 4 months?;12. Five months ago, you purchased 300 shares of stock on margin. The initial margin requirements on your account is 60% and the maintenance margin is 30%. The call money rate is 4.2% and you pay 1.75 percent above that rate. The purchase price was $18. a share. Today, you sold these shares for $21 each. What is your annualized rate of return?;Matt short sold 900 shares of stock at $11.50 a share. The initial margin is 80 percent and the maintenance margin is 50%. The stock is currently selling for a $5.80 a share. What is Matt's account equity at this time? Ignore margin interest.

 

Paper#31767 | Written in 18-Jul-2015

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