The rates of return on Cherry Jalopies, Inc., stock over the last five years were $17$ percent, $11$ percent, $-2$ percent, $3$ percent, and $14$ percent. Over the same period, the returns on Straw Construction Company's stock were $16$ percent, $18$ percent, $-6$ percent, $1$ percent, and $22$ percent. What was the arithmetic average return on each stock over this period? what is the geometric return for Cherry Jalopies, Inc.?

You have found an asset with a $12\mathrm{.}60$ percent arithmetic average return and a $10\mathrm{.}24$ percent geometric return. Your observation period is $40$ years. What is your best estimate of the return of the asset over the next $5$ years? $10$ years? $20$ years?

You purchase $275$ shares of $2$ nd Chance Co$.$ stock on margin at a price of $$53.$ Your broker requires you to deposit $$8,000.$ What is your margin loan amount?

a$)$What is the initial margin requirement?

b$)$Suppose you sell the stock at a price of $$62.$ What is your return? What would your return have been had you purchased the stock without margin? What if the stock price is $$46$ when you sell the stock?

c$)$ assuming the initial margin requirement is $70$ percent. Does this suggest a relationship between the initial margin and returns?

You have $$22,000$ and decide to invest on margin. If the initial margin requirement is $55$ percent, what is the maximum dollar purchase you can make?

You buy $500$ shares of stock at a price of $$38$ and an initial margin of $60$ percent. If the maintenance margin is $30$ percent, at what price will you receive a margin call?