A Margin User Has 1

question 39

Multiple Choice

A margin user has 1.6 invested in a risky portfolio. The risky portfolio contains .2 of Security X with an expected return of 15%. The expected return for Security X is now

• A) 25%.
• B) 15%.
• C) 21%.
• D) 4.8%.

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Definitions:

Self-energizing

Referring to a mechanism that uses the motion or force of its operation to increase its effectiveness without needing an external power source.

Secondary Shoes

Components of a drum brake system positioned to assist in braking, usually having less wear than primary shoes.

Cast Iron Master Cylinder

A crucial component in a vehicle’s brake system, typically made from cast iron, that uses hydraulic pressure to control brake application.

Hone Lubricate

The process of applying lubricant during the honing of engine cylinders or other surfaces to facilitate the smoothing operation and prolong the life of the honing tool.