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:

Dysfunctional Turnover

The loss of productive employees who voluntarily leave an organization, negatively affecting its performance.

Functional Turnover

The departure of employees from an organization that is beneficial because it occurs in situations where poor performers leave.

Personal Demands

The specific requirements or expectations that individuals impose upon themselves based on personal standards or goals.

Stress

A physical, mental, or emotional strain or tension resulting from demanding circumstances or perceived threats.