Answer 17

D. Specialized sector funds 16. You purchased 250 shares of common stock on margin for S25 per share. The initial margin is 65 %, your rate of return would be A. 35% if you sell the stock at $32 per share. Ignore interest on margin. 1450 39% 4062. 28% 17. You estimate that the expected return of the portfolio is 8% and that the standard deviation is 15%. If you had invested 1 million in the portfolio, what is the size of a large loss as measured by the VaR? a.-20.00% b.-16.75% c.-17.25% d.-16.31% 18. A purchase of a new issue of stock takes place A. in the secondary market. B. in the primary market. usually with the assistance of an investment banker. DNB and C