Use the Table for the Question(s) Below

question 15

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 $5,000 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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Unemployment

The situation of being without a job despite searching for work, reflecting the inability of an economy to generate enough jobs for its workforce.

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The process of pursuing payments of debts owed by individuals or businesses, typically conducted by collection agencies or creditors.

John Marshall

An influential United States Supreme Court Chief Justice from 1801 to 1835, known for shaping American constitutional law and judicial authority.