USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 25

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You decide to sell 100 shares of Topgun Enterprises Inc. short when it is selling at its yearly high of $42.25. Your broker tells you that your margin requirement is 60 percent and that the commission on the sale is $20. While you are short, Topgun pays a $0.85 per share dividend. At the end of one year you buy your Topgun shares (cover your short sale) at $44 and are charged a commission of $20 and a 5 percent interest rate.
-Refer to Exhibit 3.5. What is your rate of return on the investment?

• A) 10.48 percent
• B) 12.87 percent
• C) -13.98 percent
• D) -24.49 percent
• E) -15.05 percent

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Definitions:

Adaptive Alternate Behaviors

Behaviors developed as alternatives to previous, often maladaptive, behaviors to cope with situations in a more healthy or productive way.

Cognitive-Behavioral

Cognitive-Behavioral refers to a type of psychotherapy that focuses on identifying and modifying negative thought patterns and behaviors to improve emotional regulation and develop personal coping strategies.

Corrective Recapitulation

A therapeutic concept involving the re-experiencing and reworking of problematic childhood relationships and patterns within the safety of the therapeutic environment.

Therapeutic Factor

An element or process within therapy that contributes to the healing and recovery of patients, including aspects such as empathy, shared experience, and behavioral change techniques.