Questions from General Investment

Q: You buy 500 shares of stock at a price of $38

You buy 500 shares of stock at a price of $38 and an initial margin of 60 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?  

Q: A particular stock has a dividend yield of 1.2 percent

A particular stock has a dividend yield of 1.2 percent. Last year, the stock price fell from $65 to $59. What was the return for the year?  

Q: Using the information from Problem 5, what is the geometric return

Using the information from Problem 5, what is the geometric return for Cherry Jalopies, Inc.?  

Q: A stock has had returns of 21 percent, 12 percent,

A stock has had returns of 21 percent, 12 percent, 7 percent, −13 percent, −4 percent, and 26 percent over the last six years. What are the arithmetic and geometric returns for the stock...

Q: What is the Treynor measure for the Miranda Fund and the S

What is the Treynor measure for the Miranda Fund and the S&P 500?  

Q: On October 28, 2015, the DJIA opened at 17,

On October 28, 2015, the DJIA opened at 17,581.43. The divisor at that time was 0.14967727343. Suppose on this day the prices for 29 of the stocks remained unchanged and one stock increased $5.00. W...

Q: Suppose the 6-month S&P 500 futures price is

Suppose the 6-month S&P 500 futures price is 2,281.55, while the cash price is 2,270.42. What is the implied difference between the risk-free interest rate and the dividend yield on the S&P...

Q: Suppose the 6-month S&P 500 futures price is

Suppose the 6-month S&P 500 futures price is 2,399.25, while the cash price is 2,370.48. What is the implied dividend yield on the S&P 500 if the risk free interest rate is 5 percent?  ...

Q: Suppose you want to hedge a $500 million bond portfolio with

Suppose you want to hedge a $500 million bond portfolio with a duration of 5.1 years using 10-year Treasury note futures with a duration of 6.7 years, a futures price of 102, and 3 months to expirat...

Q: Suppose you want to hedge a $400 million bond portfolio with

Suppose you want to hedge a $400 million bond portfolio with a duration of 8.4 years using 10-year Treasury note futures with a duration of 6.2 years, a futures price of 102, and 85 days to expiration...