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Exhibit 4.4
Use the Information Below for the Following Problem(S)
You decide to sell 100 shares of Davis Industries short when it is selling at its yearly high of $35. Your broker tells you that your margin requirement is 55 percent and that the commission on the sale is $15. While you are short, Davis pays a $0.75 per share dividend. At the end of one year you buy your Davis shares (cover your short sale) at $30 and are charged a commission of $15 and a 6 percent interest rate.
-Refer to Exhibit 4.4.What is your dollar return on the investment?
Alarm Reaction
The initial response of the body's stress system, activating the fight or flight response to perceive threats.
General Adaptation Syndrome
A three-stage response (alarm, resistance, exhaustion) that the body has to long-term exposure to stress, proposed by Hans Selye.
Posttraumatic Stress Disorder
A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts about the event.
General Adaptation Syndrome
A three-stage response (alarm, resistance, exhaustion) that the body goes through in reaction to prolonged stress.
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