$[$Holding Period Return$]$ An art collector buys a painting at an initial cost of $$200,000.$

A year later she sells the painting for $$215,400.$ What rate of return does she achieve?

Two years ago you bought a share of J$-$mart stock for $$40.$ Over the first year, the price of J$-$mart rose

to $$60.$ Over the second year, the price of J$-$mart fell to $$30,$ which is its current price. If you sell the

stock today, what is your holding period return for the two years that you owned J$-$mart stock?

a$.75\%$

b$.0\%$

c$.-25\%$

d$.-50\%$

Arbitrage describes which one of the following:

a$.$ Making profits without taking on any risk

b$.$ Selling securities that you do not own

c$.$ Refinancing debt when interest rates decline

d$.$ A trading halt on the floor of the exchange

Based on the historical data from $1926$ to $2015$ in the U$.$S$.,$ Fill in the blanks.