1207 - Investment Analysis (FIN 383) Spring 2008 Homework 2...

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Investment Analysis (FIN 383) Spring 2008 Homework 2 Instructions: please read carefully You can either do the homework by yourself or work in a group of no more than 2 people. You should show your work how to get the answer for each calculation question to get full credit The due date is Thu Feb 21, 2008. Late homework will not be graded. Name(s): Student ID
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1. Market orders are buy or sell order that will be executed immediately at _______________ prices a. the best b. current market c. the highest d. the lowest 2. Trading of exiting stock take place in the _______________. a. secondary market b. third market c. forth market d. All of the above. 3. You purchased 100 shares of AAA common stock on margin for $40 per share. The initial margin is 60% and the stock pays no dividend. Your rate of return would be _______________ if you sell the stock at $43 per share a. -12.5% b. -7.5% c. 7.5% d. 12.5% 4. The _______________ price is the price a dealer is willing to purchase a security. a. Bid b. Ask c. Limit d. Offering 5. You purchased ABC stock at $50 per share. The stock is currently selling at $49. Your potential loss could be reduced by placing a _______________.
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1207 - Investment Analysis (FIN 383) Spring 2008 Homework 2...

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