Use the Table for the Question(s)below

question 54

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-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:

Dieting

The habit of consuming food and beverages in a disciplined way to either reach or keep a steady weight.

Bulimia

An eating disorder characterized by episodes of binge eating followed by behaviors such as self-induced vomiting to avoid weight gain.

Anorexia

A disorder characterized by substantially below-normal body weight, overwhelming fear of weight increase, and a misperception of one’s physical size or shape.

Calorie-Restrictive Dieting

A dietary regimen that reduces calorie intake below daily requirements in order to achieve weight loss.