Question
1. Suppose you were able to save $500 today, what is the future value of this amount after 25 years with an annual interest rate
1. Suppose you were able to save $500 today, what is the future value of this amount after 25 years with an annual interest rate of 8% that is COMPOUNDED QUARTERLY?
A. $2,330.48
B. $2,437.72
C. $3,424.24
D. $3,622.32
11. The SHORT SALE of a stock at $60 with 50% initial margin would result in a margin call for 30% maintenance margin, if the stock price rises to (Note: the percent equity formula is different for "buying using debt" and "short selling"):
A. $85.71
B. $60.41
C. $72.85
D. $69.23
15. If a stock has three-year annual returns of 10%, -4%, 12%, then the standard deviation is equal to:
A. 8.72%
B. 10.44%
C. 11.53%
D. 13.47%
20. If a stock A has a beta of 1.6, the risk-free rate is 4% and the market return is 10%, what is the CAPM expected rate of return for stock A?
A. 4.80%
B. 8.60%
C. 11.80%
D. 13.60%
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