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NEW QUESTION: 1
Using the following assumptions, calculate the rate of return on a margin transaction for an investor who purchases the stock and the stock price at which the investor who shorts the stock will receive a margin call.
What of the following choices is closest to the correct answer? The margin transaction return is:
A. -12.00%, and the investor will receive a margin call at a stock price of $16.67.
B. 48.00%, and the investor will receive a margin call at a stock price of $20.83.
C. 24.00%, and the investor will receive a margin call at a stock price of $30.00.
D. -24.00%, and the investor will receive a margin call at a stock price of $30.00.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
To obtain the result:
Part 1: Calculate Margin Return:
Margin Return % = [((Ending Value - Loan Payoff) / Beginning Equity Position) - 1] * 100
= [(([$22 * 1,000] - [$25 * 1,000 * 0.50]) / ($25 * 0.50 * 1,000)) - 1] * 100
=-24.00%.
Alternative (Check):Calculate the all cash return and multiply by the margin leverage factor.
= [(22,000 - 25,000)/22,000] * [1 / 0.50] = -12.00% * 2.0 = -24.00%
Part 2:Calculate Margin Call Price:
Since the investor isshort(sold the stock), the formula for the margin call price is:
Margin Call = (original price) * (1 + initial margin) / (1 + maintenance margin)
= $25 * (1 + 0.50) / (1 + 0.25) =$30.00
NEW QUESTION: 2
You create an Azure subscription.
You need to ensure that you can use Azure Active Directory (Azure AD) Privileged Identity Management (PIM) to secure Azure AD roles.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
Explanation:
Step 1: Consent to PIM
Step: 2 Verify your identity by using multi-factor authentication (MFA) Click Verify my identity to verify your identity with Azure MF Step 3: Sign up PIM for Azure AD roles Once you have enabled PIM for your directory, you'll need to sign up PIM to manage Azure AD roles.
References:
https://docs.microsoft.com/en-us/azure/active-directory/privileged-identity-management/pim-getting-started
NEW QUESTION: 3
When using a grid, tree, or tree grid repeating layout which of the following edit modes allow a system architect to call a flow action to present a separate UI to edit a list entry? (Choose Two)
A. Read only
B. Inline
C. Write only
D. Modal Dialog
E. Read/Write
Answer: B,D
NEW QUESTION: 4
Harry works as a project manager for the NHQ Project. He is performing quantitative risk analysis for his project. One of the project risks has a 40 percent probability of happening, and it will cost the project $65,000 if the risk happens. What is the expected monetary value of this risk event?
A. Zero - the risk event has not yet occurred
B. Negative $26,000
C. $27,000
D. Negative $67,000
Answer: B
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