Help with #75

74. Ali Mehmood has sells short 30 equity stocks with an average price per share of $25 by depositing 30% as initial margin for his investment portfolio. The maintenance margin is 25%. Ignoring commissions, at what price will Mehmood first receive a margin call? A. $26.67. B. $23.33. C. $26.00. (75 Martin Walsh has purchased 30,000 shares of a manufacturing concern at price per share of $15 by depositing 40% margin. One month later, the price rises to $18 and Walsh is required to pay an interest rate of 5% on the borrowed funds. The dividend per share is $0.05 and commission is paid at the rate of $0.04 per share at the time of purchase and sale. The total return on the investment is closest to: A. 29.54%. B. 41.72%. C. 42.00% 76. Markets that are semi-strong form efficient: A. are not necessarily weak-form efficient. B. render fundamental analysis unnecessary. C. are likely to perform better when passive portfolio Management is employed. 77. According to behavioral finance, observed overreaction in securities markets most likely occurs