6. Over the past five years, XYZ Clothing stock produced returns of 18.7, 5.8, 7.9, 10.8, and 11.6 percent, respectively. For the same five years, the risk-free rate 5.2, 3.4, 2.8, 3.4, and 3.9 percent, respectively. What is the arithmetic average risk premium on TeeXYZ Clothing stock for this time period?

A) 6.89 percent

B) 7.01 percent

C) 7.22 percent

D) 7.34 percent

E) 7.57 percent

7. Blackstone Mines stock returned 17.5, 17.2, -7.0, and 12.5 percent over the past four years, respectively. What is the geometric average return?

A) 5.84 percent

B) 6.36 percent

C) 7.78 percent

D) 9.54 percent

E) 10.33 percent

8. A Roth IRA:

A) is a form of "tax-deferred" account.

B) invests after-tax dollars.

C) are well-suited to investors nearing retirement.

D) funds are taxed at the time you begin withdrawals.

E) is the type of account offered by most employers.

9. One year ago, Freda purchased 500 shares of stock on margin at a price per share of $35. The initial margin requirement on her account is 70 percent and the maintenance margin is 40 percent. The call money rate is 4.75 percent and she pays 2 percent above that rate. Today, she sold these shares for $37.50 each. What is her loan repayment amount?

A) $7350

B) $5940

C) $5604

D) $12250

E) $17,500

10. A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a:

A) futures contract.

B) call option.

C) preset contract.

D) put option.

E) primary contract.