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:

Inhibitory Postsynaptic Potential

A decrease in the potential of the postsynaptic neuronal membrane, making it less likely to generate an action potential.

Resting Potential

Resting potential refers to the electric potential difference across the neuronal membrane when the neuron is not actively sending a signal.

Absolute Refractory Period

The period immediately following the firing of a nerve fiber when it cannot be stimulated to fire again, no matter how strong the incoming signal.

Action Potential

A momentary change in electrical potential on the surface of a neuron that occurs when it is stimulated and is capable of transmitting a signal along the neuron.