Problem 1:

You purchased 200 shares of common stock on margin for $45 per share. The initial margin is 50% and the stock pays no dividend. What would your rate of return be if you sell the stock at $52per/share? Ignore interest on margin.

Problem 2:

If a portfolio had a return of 8%, the risk-free asset return was 3%, and the standard deviation of the portfolio's excess returns was 20%, the Sharpe measure would be ________ Sharpe Ratio = (RpRf)/p

Problem 3:

Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?