1) If a portfolio had a return of 8%, the risk free return was 3%, and the standard deviation of the portfolio's excess returns was 20%, the Sharpe measure would be __.

A) 0.25

B) 0.08

C) 0.03

D) 0.2

2) You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30? ignore interest on margin.

A) 0.43

B) 0.25

C) 0.55

D) 0.33

3) If the compounding period is less that 1 year, the effective annual rate is greater than the annual percentage return.

A) True

B) Fales

4) Dividend yield is not a component of the holding period return.

A) True

B) False