Exhibit 4.6 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 90

Multiple Choice

Exhibit 4.6
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You decide to sell short 200 shares of XCorp stock at a price of $75. Your margin deposit is 65 percent. Commission on the sale is 1.25%. While you are short, the stock pays a $1.75 per share dividend. Interest on margin debt is 5.25% per year.
-Refer to Exhibit 4.6. At the end of one year you close out your short position by purchasing share of XCorp at $45 per share. The commission is 1.25%. What is your rate of return on the investment?

• A)-55.92%
• B)10.31%
• C)51.06%
• D)23.1%
• E)-33.05%

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Definitions:

Subliminal Sensation

A perception of stimuli that occur below the threshold of conscious awareness.

Transduce

The process of converting one form of energy into another, as in sensory systems converting physical stimuli (e.g., light, sound) into neural signals.

Wavelength

The distance from the peak of one light wave or sound wave to the peak of the next. Electromagnetic wavelengths vary from the short gamma waves to the long pulses of radio transmission.

Intensity

The degree of strength, force, or concentration of a particular attribute or activity.