1. Assume you buy 100 shares of IBM common stock on margin at $125 per share. If the initial margin is 60%, what is the amount that you put in?

   		$3750
   		$10,120
   		$7500
   		$6250

0.3 points

QUESTION 2

1. The price of a stock is $35 at the beginning of the year and $34 at the end of the year. If the stock paid a $2 dividend, what is the holding-period return for the year?

   		1.25%
   		4.73%
   		2.86%
   		3.54%

0.3 points

QUESTION 3

1. If the nominal rate of return on investment is 6% and inflation is 1% over a holding period, what is the real rate of return on this investment?

   		4.95%
   		3.92%
   		4.54%
   		5.23%

0.3 points

QUESTION 4

1. The geometric average of -5%, 8%, and 12% is _________.

   		7.24%
   		5.25%
   		4.74%
   		9.24%

0.3 points

QUESTION 5

1. I bought a zero coupon bond for $700 in 2016. The bond had a face value of $1000, and at the time of my purchase, the bond had 10 years until maturity. I sold the bond 3 years later in 2018 for the price of $768. What was the closest to the annualized holding period return of this investment?

   		3.14%
   		1.53%
   		3.24%
   		1.17%

0.3 points