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1. Cappy Gains, CFP(R) Certificant, is a proponent of index funds. Which of the following forms of the Efficient Market Hypothesis (EMH) is Cappy advocating?

the semi-weak form of the efficient market hypothesis.

the semi-strong form of the efficient market hypothesis.

the strong form of the efficient market hypothesis.

the weak form of the efficient market hypothesis.

2. Abigail has a margin brokerage account. During the year, Abigail purchased on margin 500 shares of DEF common stock at $35 per share. The current margin requirement is 55%, but the broker that Abigail uses has a 60% margin requirement. If the current price of DEF stock is $20 per share and the maintenance margin requirement is 40%, how much money must Abigail commit due to the margin call?

$500

$1,000

$1,875

$7,500

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92707000

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