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NEW QUESTION: 1
Gerard Rouleau is studying for the Level 2 CFA examination. His friend, Sonia Fennell, is studying for Level 1. One weekday morning they are sitting at the local Cafe drinking espresso when she asks him for help with the section on margin trading. Rouleau creates the following scenario: Assume Fennell purchases 1,000 shares of Xpressoh Inc. for $35 per share. The initial margin requirement is 50 percent and the maintenance margin is 25 percent One year later, she sells the stock for $42 per share. Rouleau asks Fennell to calculate the one-year return under two cases: first, assuming an all-cash transaction,and second, assuming she buys on margin. She is to ignore transaction and borrowing costs. The earnings retention rate is 100%.
Which of the following choices is closest to the correct answer? The return on an all cash transaction is:
A. 20.00%, and the return on the margin transaction is -40.00%.
B. 40.00%, and the return on the margin transaction is 80.00%.
C. 20.00%, and the return on the margin transaction is 40.00%.
D. 20.00%, and the return on the margin transaction is 80.00%.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
One quick (and less than intensive) way to calculate the answer to this on the examination (and is it very important to save time on the examination) is to first calculate the return if all cash, then calculate the margin leverage factor and then finally, multiply the leverage factor times the all cash return to obtain the margin return.
Calculations:
Step 1: Calculate All Cash Return:
Cash Return % = [(Ending Value / Beginning Equity Position) - 1] * 100
= [(($42 * 1,000) / ($35 * 1,000)) - 1] * 100 = 20%
Step 2: Calculate Leverage Factor:
Leverage Factor = 1 / Initial Margin % = 1 / 0.50 = 2.00
Step 3: Calculate Margin Return:
Margin Transaction Return = All cash return * Leverage Factor = 20% * 2.00 = 40% Note: You can verify the margin return as follows:
Margin Return % = [((Ending Value - Loan Payoff) / Beginning Equity Position) - 1] * 100
= [(([$42 * 1,000] - [$35 * 1,000 * 0.50]) / ($35 * 0.50 * 1,000)) - 1] * 100 = 40%

NEW QUESTION: 2
Manesh is developing the ActivityPlanner XPage. He now needs to add check boxes that allow users to select one or more of the activities of "Monthly Volunteering," "New Hire Orientation," and "Quality Circle." How can Manesh create the check boxes?
A. From the Controls palette, drag "Other" onto the XPage and select Other Controls > Checkbox group.
Open the Source tab, and within the xp:checkBoxGroup tag, enter these lines: <xp:selectItem itemLabel="Monthly Volunteering" itemValue="01"></xp:selectItem> <xp:selectiItem itemLabel="New Hire Orientation"itemValue="02"></xp:selectItem>
<xp:selectItemitemLabel="Quality Circle"itemValue="03"></xp:selectItem>
B. Drag a Check Box control onto the XPage canvas. In the Options area of the Properties tab, enter the following values lines:Monthly VolunteeringNew Hire OrientationQuality Circle
C. Create a Check box group control on the XPage canvas. In the Options area of the Properties tab, enter the following values on separate lines: Monthly VolunteeringNew Hire OrientationQuality Circle
D. From the Controls palette, drag "Check Box" onto the XPage canvas. open the Source tab, and within the xp:checkBox tag, enter these lines:<xp:selectItem itemLabel="Monthly Volunteering"itemValue="01"></xp:selectItem><xp:selectitem itemLabel="New Hire Orientation"itemValue="02"></xp:selectItem> <xp:selectItemitemLabel="Quality Circle"itemValue="03"></xp:selectItem>
Answer: A

NEW QUESTION: 3
APIは、どのSalesforce.comエディションで使用できませんか?
A. Developer Edition
B. Enterprise Edition
C. 無制限版
D. プロフェッショナル版
Answer: D

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