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6. One year ago, you purchased 100 shares of Southern Foods common stock for $42.20 a share. Today, you sold your shares for $39.70 a

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6. One year ago, you purchased 100 shares of Southern Foods common stock for $42.20 a share. Today, you sold your shares for $39.70 a share. During this past year, the stock paid $1.40 in dividends per share. What is your dividend yield on this investment? Dividend yield is a percentage. 7. Last year, ABC stock returned 11.4 percent, the risk-free rate was 3-2 percent, and the inflation rate was 2.8 percent. What was the risk premium on ABC stock? A 8.20 percent B. 8.43 percent C. 8.60 percent D. 8.88 percent E. 8.97 percent 8. An asset had annual returns of 17.-35.-18, 24, and 4 percent, respectively, over the past five years. What is the arithmetic average return? 9. Which one of the following best describes the term "initial margin"? A. Amount of money that must be deposited to open a margin account with a broker B. Amount of cash that must be paid to purchase a security on margin C. Amount of cash that must be paid when a broker issues a margin call D. Amount of money borrowed when a security is purchased E Total loan amount offered to a customer by a brokerage firm to cover future purchases

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