Question 21 ~ 25

Which of the following is true? the P/E effect is limited to U.S. stocks. Historically, low P/E or value stocks have outperformed high P/E or growth stocks. Historically, high P/E or growth stocks have outperformed low P/E or value stocks. After adjusting for risk, high P/E or growth stocks and low P/E or value stocks have performed about the same over time. A company has sales of $640,000, net profit after taxes of $23,000, and a total asset turnover of 2.5. What is the return on assets? 4.5 8.1 9.0 3.6 Samira got into a long position of 5 October 2022 Silver contracts at 20.500. Each contract is for 5000 troy ounces of silver. The prices at COMEX exchange are quoted as dollars per troy ounces. Her broker asked her to deposit 5% of the position as the initial margin. The next two days the closing prices were as follows: What is the balance of Samira's account at the end of day 2? $11,875 $99.75 $997.50 $2,375 Assume the initial margin on a Swiss franc futures contract is $2,000. If an individual purchases a contract at $0.78 per franc and the contract involves 125,000 Swiss francs, what return on invested capital will the investor receive if the price per franc moves to $0.80 ? 100% 50% 3% 125% Last year, Sue purchased a closed-end mutual fund that was trading at $42 and had an NAV of $38. Sue sold the fund today when the NAV is $44 and the market price is $43. The fund paid $1 in dividends over the past year. What is the Sue's holding period return? 11.6% 4.8% 18.4% 7.1%