bankers acceptances brokers' calls rate it is a mais accounted for a stock You decide side to purchase an equal number of shares of stocks of firms to create a portfolio If you wanted ruct an index to track your portfolio performance, your best match for your portfolio would to construct an index be to construct (a) a value-weighted index (b) an equally weighted index (c) a price-weighted index (d) a bond price index 26. Which of the following is not considered a money market investment? (a) bankers' acceptance (b) eurodollar (c) repurchase agreement (d) Treasury note 27. An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount invested to $10.000. The broker charges 7% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $28. The investor's rate of return was (a) 17% (b) 12% (c) 14% (d) 19% 28. Eurodollars are (a) dollar-denominated deposits at any foreign bank or foreign branch of an American bank (b) dollar-denominated bonds issued by firms outside their home market (c) currency issued by Euro Disney and traded in France (d) dollars that wind up in banks as a result of money laundering activities 29. What is the tax exempt equivalent yield on a 9% bond yield given a marginal tax rate of 28%? (a) 6.48% (b) 7.25% (c) 8.02% (d) 9% 30. You sell short 200 shares of Doggie Treats Inc. that are currently selling at $25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account, and the firm does not pay any dividends.) (a) $31.50 (b) $28.85 (c) $32.25 (d) $35.71