Assume you sell short 1000 shares of common stock at \$35 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at \$25/share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.

A. Liquidity

B. Liquidity premium

C. Long maturity and liquidity premium

D. Marketability

E. Long maturity

A. $1375.00

B. -$27.50

C. $1325.00

D. -$1375.00

E. $27.50

A. $80.34

B. $42.86

C. $49.67

D. $50.75

E. none of the above

A. the Value Line Composite Index.

B. the NYSE Composite Index.

C. the NASDAQ Composite Index.

D. the Wilshire 5000 Index.

E. the Russell Index.

A. repurchase agreements

B. money market mutual funds

C. savings deposits

D. Eurodollars

E. T-bills

A. I and II only

B. I, II, and III

C. I only

D. II and III only

E. I and III only

A. The divisor must be adjusted for stock splits.

B. It is a price-weighted average of 30 large industrial stocks.

C. It is a price-weighted average of 30 large industrial stocks and The divisor must be adjusted for stock splits.

D. It is a value-weighted average of 30 large industrial stocks and The divisor must be adjusted for stock splits.

E. It is a value-weighted average of 30 large industrial stocks