Which one of the following correctly identifies the phenomenon that states that one month has the greatest tendency for small stocks to earn large returns?

Hazel purchased 450 shares of Baby Jenae stock for $16.00 a share. The stock was purchased with an initial margin of 64 percent. The maintenance margin is 35 percent. The stock is currently selling for $10.30 a share. What is the minimum dollar amount of equity that she must have in this stock today to avoid a margin call?

The term hedge refers to something that is used ________.

Assume the following financial data: Total earnings (after-tax): $73,300Dividends per share: $2.90Stock price: $49.00Shares outstanding: 33,900Find the firm’s P/E ratio.

A stock has an expected return of 14.20 percent and a beta of 1.4, and the expected return on the market is 11.00 percent. What must the risk-free rate be?

You short-sell 300 shares of Krista’s Ironing Co. now selling for $30 per share. What is your maximum possible gain, ignoring transactions cost?

Given the following financial data: Net income / Sales = 15 percent; Sales / Total assets = 3.1 times; Debt / Total assets = 70 percent; compute return on assets.

Given the following financial data: Net income / Sales = 6 percent; Sales / Total assets = 4.5 times; Debt / Total assets = 49 percent; compute return on equity.

Which of the following are ineffective strategies for producing excess returns if the market is semistrong-form efficient?I. graphing past prices searching for patterns II. watching the daily market movements III. studying the latest analyst’s reports IV. analyzing a firm’s financial statements

Assume you buy 550 shares of stock at $12.60 per share on margin (43 percent). How much would you need to contribute to initiate this position?