35. An investor buys 100 shares of W of S56. Section percent and a maintenance margin of 25% percent. In two mo almart at S45 per share on margin with an initial months, the stock goes to margin (a) (b) What is the actual margin of the stock when it's at $56? Below what price will a margin call occur? 36. A stock is purchased for s50 on January 1 and sold on December 31 for share dividend is paid during the year. $72. A S5.00 per (a) Calculate the TR. (b) Calculate the RR 37. The S&P 500 showed the 20.3 percent, 26.7 percent, -12.4 percent, and 2.2 percent following TRs for a 6 year period: 11.1 percent, -5.2 percent. (a) Calculate the arithmetic mean return for the 6 year period. (b) Calculate the geometric mean return for the 6 year period. (c) Which measure is best for forecasting next year's return? d What is your best estimate of the value of a $1000 investment in five (5) years ? 38. John Crossborder buys 1 share of Telmex at 140 pesos when the value of the peso is stated in dollars at $0.35. One year later, Telmex is selling for 160 pesos. If after 1 year the value of the pesos is $0.29, what will John's rate of return be in U. S. dollars? 39. Calculate the expected return and risk (standard deviation) for General Fudge for (a) 200x, given the following information: Probabilities Possible Outcomes 0.20 0.15 0.50 0.15 20% 15% 11% -5% (a) Suppose you had to choose between General Fudge and stock B, with expected return E(ra)-996 , and B-606. Which is preferred on a stand-alone basis? two-security portfolio if the correlation coefficient (PAB) between the two securities is equal to-0.6 40. (a) Calculate () the expected return, (ii) the risk (standard deviation) of the following ExpectedReturnEnStetumation weightrinthepertfole) 10% 18 0.3 Security A 10 Security B 20 07 (b) Is it a good idea to combine the above assets (A and B) in a portfolio? Explain in one, short sentence