Question 5 (3 points) Assume you had purchased Citicorp for $33 a share. Since then the stock price has risen to $40 a share. What type of order could you use to sell the stock only if the price started to fall? 1) Market order 2) Limit buy order 3) Limit sell order 4) Stop-loss order Question 6 (3 points) Assume you buy $50,000 worth of stock using 60% margin. What does that mean? 1) You borrowed $30,000 and put up $20,000 of your own money. 2) You borrowed $20,000 and put up $30,000 of your own money. 3) You put up $50,000 of your own money and borrowed $30,000 more. 4) You put up $30,000 of your own money and borrowed $50,000 more. Question 7 (3 points) Assume you buy $50,000 worth of stock using 60% margin. Assume your borrowing costs are 10% per year and you expect the stock price to go from $100 to $110 over the next year. What is your dollar return after borrowing costs? 1) $5.000 21 $3.000 3) $7.000 4) $2,000 Question 8 (3 points) Before 1933, the initial margin was only 10% and the maintenance margin was only 5%. Approximately how far could stock prices fall based on the initial purchase price before an investor's equity would be completely wiped out? Assume only 10% margin was used 1) 5% 2) 10% 3) 30/0 4) 50%