question archive 1)An investor purchased 100 shares of IBZ at 72 using a 60% initial margin
1)An investor purchased 100 shares of IBZ at 72 using a 60% initial margin
Subject:StatisticsPrice: Bought3
1)An investor purchased 100 shares of IBZ at 72 using a 60% initial margin. Due to unexpected news the stock price drops the next day to 26 and she receives a margin call.
How much money does she need to put on her account, if the broker requires that she restores the % margin to the initial 60% level?
Provide your answer rounded up to the next dollar.
2)Consider the following two stock and their returns in January and February. What was the holding period return on your portfolio, if you invested 40% of your money in Z and the remaining in W?
Stock
January February
Z 30% -30%
W -2% 8%
Provide your answer in percent, rounded to two decimals omitting the % sign.
3)What is the taxable equivalent yield on a municipal bond yielding 6% for an investor in a 21% tax bracket?
4)You have invested 70% of your portfolio in a stock with 45% standard deviation and the remaining in a stock with 20% standard deviation. The two stocks' correlation is 0.4. What is the standard deviation of the portfolio?
