Fins5513 Quiz 1 Question

Question 1

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A bond that can be retired prior to maturity by the bond holder is a Answer bond.

Question 2

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The interest income from Answer is exempt from U.S. federal income tax and most state taxes in the United States.

Question 3

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Value-weighted indexes are affected by stock splits.

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True

False 

Question 4

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Answer  are funds borrowed from banks by brokers and loaned to investors in margin accounts. They are funds borrowed by the broker from the bank, with the agreement to repay the bank immediately if requested to do so.

Question 5

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Suppose the prices of Stock A are $15.54, $13.94, $5.87, $4.91, $5.81, $18.11 and $22.94 for the past 7 days. The sample mean of the stock prices is Answer.  (Note: answer must be accurate to 2 decimal places. The tolerance used is 0.01 and you may leave your answer with more than 2 decimal places.)

Question 6

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Suppose the values of the variable x are 18.41,21.57 and 33.53. The sample standard deviation of x is Answer.  (Note: answer must be accurate to 2 decimal places.)

Question 7

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You purchased 553 shares of a company’s common stock on margin at $65.2 per share. Assume the initial margin is 55% and the stock pays no dividend.  Ignoring interest on margin, the maintenance margin would be Answer% or slightly higher if a margin call is made at a stock price of $40.96.  (Note: answer must be accurate to 2 decimal places.)

Question 8

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You sold short 333 shares of common stock at $60.48 per share. The initial margin is 55%....