Question 1-2B What is the difference between a... [FREE SOLUTION] (2024)

Suppose that Intel currently is selling at \(40 per share. You buy 500 shares using \)15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.

a. What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (i) \(44; (ii) \)40; (iii) \(36? What is the relationship between your percentage return and the percentage change in the price of Intel?

b. If the maintenance margin is 25%, how low can Intel’s price fall before you get a margin call?

c. How would your answer to ( b ) change if you had financed the initial purchase with only \)10,000 of your own money?

d. What is the rate of return on your margined position (assuming again that you invest \(15,000 of your own money) if Intel is selling after one year at (i) \)44; (ii) \(40; (iii) \)36?

What is the relationship between your percentage return and the percentage change in the price of Intel? Assume that Intel pays no dividends.

e. Continue to assume that a year has passed. How low can Intel’s price fall before you get a margin call?

Question 1-2B What is the difference between a... [FREE SOLUTION] (2024)

FAQs

What is 6 2 1 2 the correct answer explained? ›

The problem would either be written as (6/2)(1+2) or 6/(2(1+2)), the answers being 9 and 1, respectively. But it's not ambiguous, because there's only one possible correct answer. The other answer, 1, is obtained through the incorrect execution of the order of operations.

Why can't Dr. Knowles generalize the results of her study to the general population? ›

Dr. Knowles can't generalize because there are only 10 subjects. This study's results cannot be generalized to the population because it is likely the sample consisted only of people interested in floral shirts, which many people likely don't care about.

Why does this equation have 2 solutions? ›

There are commonly two solutions to quadratic equations because the solutions are where the parabola crosses the -axis. If the vertex is below the -axis and the parabola opens up, the graph will cross twice, and if the vertex is above the -axis and the parabola opens down, the graph will, again, cross twice.

Why is the answer of 2 2 2 is 6? ›

So, in the equation 2+2×2, the multiplication should be done first, because it is higher in the order of operations than the addition. Therefore, 2+2×2 is actually equal to 2+4, which is equal to 6.

What is 2 6 in fraction form? ›

Answer: The value of 2 divided by 6 as a fraction is 1/ 3.

What is the answer 1 or 16? ›

As such, for the record, the debate over one versus 16 is now over! The answer is 16. Case closed. Also, there should have never really been a debate in the first place.

What is the answer of 1 by 6? ›

Writing 1/6 as a decimal using division method

To convert any fraction to decimal form, we just need to divide its numerator by denominator. Here, the fraction is 1/6 which means we need to perform 1 ÷ 6. This gives the answer as 0.1666... So, 1/6 as a decimal is 0.16666...

Why Lynn's assumption is likely incorrect? ›

Lynn's assumption is likely incorrect because sleepwalking and dreaming are unrelated. Lynn assumes that Ruth must have been acting out a dream of being chased by a creature, but sleepwalking and dreaming are two different phenomena that occur during different stages of sleep.

What is the arousal theory of Frq? ›

The optimal arousal theory says that people perform best when their arousal level is neither too high nor too low. Ruth's arousal increases when she is startled by her roommate. The response must indicate that motor neurons are enabling a specific physical movement in the scenario.

Why the psychologist Cannot generalize your findings to all children? ›

Point 3 (C): Generalizability

Responses must indicate that the psychologist cannot generalize because of sampling bias, OR there was no random sampling/selection procedure, OR the psychologist only used children in her neighborhood.

What is the next number in the sequence 1 2 6 21? ›

series progresses as ×1+1,×2+2,×3+3,×4+4… So our series is 1, 2, 6, 21, 88, 445

What is 6 division 2? ›

Six divided by two is three.

Do you multiply or divide first? ›

PEMDAS (“Parentheses, exponents, ...”) and BEDMAS are also used in the USA and Australia. Returning to the above example, the correct answer would be the first answer as it follows the rules of BODMAS: division can be done before multiplication and must be done before addition, and multiplication comes before addition.

What is the answer for 6 divided by 2 1/2? ›

According to the order of operations, division and multiplication have the same precedence, so the correct order is to evaluate from left to right. First take 6 and divide it by 2, and then multiply by 3. This gets to the correct answer of 9.

What is the answer for equation? ›

A solution of an equation is any value of the variable that satisfies the equality, that is, it makes the Left Hand Side (LHS) and the Right Hand Side (RHS) of the equation the same value. To solve an equation is to find the solution(s) for that equation.

What is the answer to 2 to the power 6? ›

Answer: The value of 2 raised to 6th power i.e., 26 is 64. Let us calculate the value of 2 raised to 6th power i.e., 26. Thus, 26 can be written as 2 × 2 × 2 × 2 × 2 × 2 = 64.

Top Articles
Latest Posts
Article information

Author: Msgr. Benton Quitzon

Last Updated:

Views: 5951

Rating: 4.2 / 5 (43 voted)

Reviews: 90% of readers found this page helpful

Author information

Name: Msgr. Benton Quitzon

Birthday: 2001-08-13

Address: 96487 Kris Cliff, Teresiafurt, WI 95201

Phone: +9418513585781

Job: Senior Designer

Hobby: Calligraphy, Rowing, Vacation, Geocaching, Web surfing, Electronics, Electronics

Introduction: My name is Msgr. Benton Quitzon, I am a comfortable, charming, thankful, happy, adventurous, handsome, precious person who loves writing and wants to share my knowledge and understanding with you.