Suppose You Have $10,000 in Cash to Invest

question 104

Multiple Choice

Suppose you have $10,000 in cash to invest.You decide to sell short $5000 worth of Kinston stock and invest the proceeds from your short sale,plus your $10,000 into one-year U.S.treasury bills earning 5%.At the end of the year,you decide to liquidate your portfolio.Kinston Industries has the following realized returns: The return on your portfolio is closest to:

• A)-0.5%.
• B)13.5%.
• C)-2.5%.
• D)14.5%.

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Definitions:

Faulty Inverter

Refers to a malfunctioning device that converts direct current (DC) into alternating current (AC), potentially leading to power loss or instability in devices relying on it.

Power Brick

An external power supply unit that converts electrical power from a wall outlet to the proper voltage and current to operate a device.

Protocol

A protocol is a set of rules and standards that enable two entities to communicate over a network, ensuring the successful transmission of data.

POP3

Post Office Protocol 3, an internet standard protocol used by local email clients to retrieve emails from a remote server over a TCP/IP connection.