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Using the lecture, video, and textbook, match the correct response to each question. 

Using the lecture, videos, and textbook, match the statement that best describes each structure. 

You purchase 320 shares of Blue Horizon Co. stock on margin at a price of $45 per share. Your broker requires you to deposit $6,400 of your own funds.a) What is your margin loan amount?b) What is the initial margin requirement?

An important difference between a long position in stock and a short position concerns the potential gains and losses. Suppose a stock sells for $25 per share and you trade 400 shares. What are your potential gains and losses for each type of position?

Northgate Corporation stock sells for $22 per share, and you’ve decided to purchase as many shares as you possibly can. You have $28,000 available to invest. Assume the initial margin is 70 percent, and partial shares can be purchased.a) Construct your equity account balance sheet at the time of your purchase.b) Construct the balance sheet when the share price rises to $30. What is your margin?c) Construct the balance sheet when the share price falls to $18. What is your margin?

You just sold short 600 shares of BrightRidge, Inc. at $72 per share. You cover your short when the price hits $65 per share one year later. If the company paid $1.20 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 50 percent.

An investment has an expected return of 9 percent per year with a standard deviation of 15 percent. Assume that returns are approximately normally distributed. a) How frequently do you expect the return to fall between −21 percent and 39 percent? Explain. b) How often do you expect the return to be greater than 39 percent? Explain.

A particular stock had a return last year of 4 percent. However, you look at the stock price and notice that it actually didn’t change at all last year. How is this possible?

Audit risk assessment is an important step in the audit process because

A federal agency that develops and issues government auditing standards is known as