QUESTIONS 80 THROUGH 93 RELATE TO EQUITY INVESTMENTS. (21 MINUTES)AN A...

13.7%.

C)

Question #81 of 120 Question ID: 1146151

An investor buys a stock for $50. The initial margin requirement is 50%, and the maintenance margin requirement is 25%.

The price below which the investor would receive a margin call would be:

$25.00.

A)

$33.33.

B)

$37.50.

Question #82 of 120 Question ID: 1146152

A securities market exhibits operational efficiency if it offers:

low transaction costs.

prices that respond rapidly to new information.

rates of return that are proportional to risk on average.

Question #83 of 120 Question ID: 1146156

A stock index consists of two stocks. As of January 1:

Company A has 50 shares outstanding valued at $2 each.

Company B has 10 shares outstanding valued at $10 each.

The price-weighted index is 6, and the value-weighted index is 100.

On June 30, the price of Company A's stock has increased to $4 per share. Effective the morning of July 1, Company B's

stock splits two- for-one and is priced at $5. The opening values of the price-weighted index and the value-weighted index

on July 1 are:

Price-weighted Value-weighted

7 150

7 125