1) Studies show that segregated funds

A.consistently outperform stock markets because of their guarantee.

B.consistently outperform mutual funds because of the important insurance option.

C.consistently outperform mutual funds because of the probate fees.

D.consistently underperform mutual funds because of their higher expenses.

2) You purchased stock worth $10 000 on margin (50 percent). Now the value of your stock has declined to $7000 and you receive a margin call. How much cash do you need to bring the margin back to the minimum level?

A.$2000

B.$1500

C.$3000

D.$5000