Exhibit 4.8 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 35

Multiple Choice

Exhibit 4.8
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

You sell 100 shares short of AMF Corporation when it is selling at $45 per share. Your margin requirement is 60% and the commission on the sale is $50 and the broker charges 10% annual interest. AMF Corporation paid a $0.50 per share dividend while you were short the stock. After one year you cover your short sale at $35 per share with a $50 commission for the purchase.
-Refer to Exhibit 4.8.What is your annual rate of return on this investment?

• A) 18%
• B) 24%
• C) 25%
• D) 36%
• E) 37%

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Definitions:

Concealed Information Tests

A psychological assessment method used to determine if an individual is hiding knowledge or information related to a specific event or topic.

Polygraph Examiners

Professionals trained to conduct polygraph tests, which are used to assess the veracity of individuals' statements.

Specific Probes

Techniques or questions designed to elicit particular responses or information in research or investigations.

Diplomatic Corps

The Diplomatic Corps consists of the ambassadors and other diplomatic representatives of various countries stationed in a particular country.