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------------------------------------------------- FINAL EXAM ------------------------------------------------- Fall 2015 ------------------------------------------------- Investments ------------------------------------------------- BUS 315 Student Name: _____________________________Student Number:_________________ DURATION: 3 HOURS No. of Students: 125 Department Name & Course Number: BUSI 315 Section: D100 Course Instructor(s): Yuriy Zabolotnyuk ------------------------------------------------- AUTHORIZED MEMORANDA Financial calculator Students MUST count the number of pages in this examination question paper before beginning to write, and report any discrepancy to a proctor. This question paper has …show more content…

b) Security prices quickly reflect new information. c) Investors react to all information releases rapidly. d) It is impossible to make profit. 13) Assume that you sold short 500 shares of common stock at $35 per share. The initial margin is 40%. No dividends were paid during the period, and no interest is paid on borrowed funds during the period. What would be the minimum margin requirement, if a margin call is made at a stock price of $40? a) 20% b) 40% c) 23% d) 33% 14) An investor has the following utility function: U = E(r) – 0.5Aσ2. Portfolio X has an expected rate of return of 12.5% and a standard deviation of 0.15. Portfolio Y has an

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