Byron Campbell purchased 300 shares of Crescent, Inc. , stock at a price of $80 per share. The purchase was made on margin with an initial margin requirement of 50 percent. Assuming the maintenance margin is 25 percent, the stock price of Crescent, Inc. has to fall below what level for Campbell to receive a margin call
A. $40.00.
B. $30.00.
C. $53.33.
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Fundamental analysis studies indicate that:
A. the bottom up approach to analysis will not yield superior results if the analysis only looks at past and current information.
B. the top down approach to analysis will not yield superior results if the analysis only looks at past and current information.
C. the top down approach to analysis will not yield superior results if the analysis looks at past, current and future information.
Bond market indexes are generally more difficult to create than stock indexes for all of the following reasons except:
A. the small number of bond issues relative to stocks.
B. the routine maturity and call provisions of bonds.
C. the difficulty in establishing market prices for many bonds.
Which of the following statements describes the overall conclusions regarding the weak-form of the efficient market hypothesis (EMH)
All evidence indicates that simple trading rules generate positive abnormal returns.
B. Stock exchange specialists using monopolistic information contained in the limit order book derive above average returns.
C. Most evidence indicates that after incorporating trading costs, simple trading rules do not generate positive abnormal profits.
Assume you purchased 1500 shares of a stock on margin at $34 per share. The initial margin rate is 40%, and the minimum maintenance margin is 25%. Assume no dividends, commissions, or margin interest. Below what stock price would you receive a margin call
A. $18.13.
B. $27.20.
C. $30.31.