Ms. Brown sold short 100 shares of common stock at $78 per share. The price has declined to $69. The outlook for the stock is mixed, so she would cover her short position if the stock moves up as much as $1 but hold if it continues down. Ms. Brown should place a 6. a. sell stop order at $70. b. buy stop order at $70. c. sell limit order at $70. d. buy limit order at $70. 7. Total return is equal to: a. capital gain+ price change. b. yield + income. c. capital gain - loss. d. yield + price change 8. All of the following represent the yield component of total return EXCEPT: a. Dividend payment on common stock b. Coupon interest payment on bonds c. Capital gain upon sale of stock d. Dividend payment on preferred stock 9. Investors should be willing to invest in riskier investments only: a. if the term is short b. if there are no safe alternatives except for holding cash c. if the expected return is adequate for the risk level d. if they are true speculators 10. If a U.S. investor buys foreign stock, his dollar-denominated return will increase if the dollar: a. appreciates in value. b. depreciates in value. c. remains unchanged. d. moves to a net gain position. II. The best return measure to use if you are trying to measure the total effect of returns over time given some stated beginning amount is the: a. total return b. C. d. return relative cumulative wealth index total yield