Help with #89

C. Changes in the futures prices of commodities in the index 87 A trader who buys a stock priced at $64 on margin with a leverage ratio of 2.5 and a maintenance margin of 30% will most likely receive a margin call when the stock price is at or falls just below: *A. $36.57. B. $44.80. C. $54.86. 88. Compared to its market-value-weighted counterpart, a fundamentally weighted index will least likely have a: A. value tilt. B. contrarian "effect." C. momentum "effect." (89) The exhibit below summarizes information concerning a market-capitalization weighted index: Beginning of period price per Dividends per End of period price Shares outstanding Stock share ($) share ($) per share ($) 45,570 50 120 A 59,650 250 B 25 200 112,740 C 160 180 The price return on the market-capitalization weighted index is closest to: A. 4.08%. B. 4.35%. C. 6.49%. 140 90. Joanne Bennett has purchased 100 shares of stock each worth $56.50. The stock does not pay an annual dividend. Bennett uses a leverage ratio of 1.8 to make the purchase with a call money rate of 4.0%. Three months after the want nnire rises to $60.00. Ignoring commissions, the return on the investment is closest to