Your investment has a 5% chance of losing 12%, a 75% chance of earning a 10% rate of return, and a 20% chance of losing 6%. What is your expected return on this investment? 4.3% 6.5% 11.4% 5.7% You purchased 100 shares of ABC common stock on margin at $70 per share. Assume the initial margin is 60% and the maintenance margin is 40 You will get a margin call if the stock price drops below (Assume the stock pays no dividends, and ignore interest on the margin loan.) $48.74 $46.67 $50.12 $35.71 Which of the following loans is the most expensive? Loan X: APR=11.5%, compounded three times per year Loan Y: APR=11%, compounded monthly Loan Z: APR = 11.3%, compounded semi-annually Loan Y They are all equally expensive Loan X Loan Z Investors can form complete portfolios out of two assets: a risk-free asset and a risky portfolio. Peter is more risk averse than Tom. Which of the following statements is consistent with both investors making the optimal portfolio choice? Peter's optimal complete portfolio has 100% invested in the risk-free asset; Tom's optimal complete portfolio also has 100% invested in the risk- free asset. Peter's optimal complete portfolio has 30% invested in the risky portfolio;Tom's optimal complete portfolio has less than 30% invested in the risky portfolio. Peter's optimal complete portfolio has 100% invested in the risky portfolio; Tom's optimal complete portfolio involves lending money at the risk free rate. Peter's optimal complete portfolio has 50% invested in the risky portfolio; Tom's optimal complete portfolio has more than 50% invested in the risky portfolio