1. An equal-weighted index is comprised of three stocks. Yesterday the three stocks were priced at $12, $20, and $60. The number of outstanding shares for each is 600,000 shares, 500,000 shares, and 200,000 shares, respectively. If the stock prices changed to $16, $18, and $62 today respectively, what is the one day return of the equal-weighted index?

4.78%

4.99%

6.16%

None of the above

2. If you were selling municipal bonds with a 7% yield, while corporate bonds had a yield of 9%, the marginal tax rate of a buyer of the municipal bonds should be equal to or greater than ___________ to make the purchase worthwhile.

21.6% 22.2% 26.8% 27.8% 35.6%