1.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 fi a margin call is made at a stock price of $30?

2.what of the following statement regarding CAPM is incorrect?

a, CAPM assumes that investors use the same Markowitz analysis when making investment decisions

b, Assets with zero-beta are considered as risk-free assets.

c, More cyclical stocks in general have higher

d, If CAPM holds, all investors hold the same optimal risky portfolio

e, Under CAPM, investors can have different wealth and risk aversion

3.which of the following statement is not consistent with the semi-strong market efficiency ?

a. one publicly-listed company has generated high returns for 10 years in a row

b. stock prices follow a random walk

c. company stock price declines after the company announces a significant increase in its annual earnings compared to last year

d. an investor makes superior returns because of his advance knowledge of a change in firm's policy

e. a fund manager persistently identifies stocks with positive alpha using fundamental analysis

4.which one of the following bonds has the highest price volatility? assume everything else is held constant

a, 5year, 10%coupon bond

b, 10y, 0 %

c, 20y, 10%

d, 15y, 5%

e, 20y, 0%