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A stock has produced returns of 24 percent, 15 percent, –43 percent, and 38 percent over the past four years, respectively. What is the geometric average return?

Value firms typically have ___________ P/E ratios than growth firms. On average, over time, value stocks tend to have ______________ returns than growth stocks.

Which of the following comparisons CANNOT be made using ratio analysis.

Given the following financial data: Net income / Sales = 15 percent; Sales / Total assets = 3.1 times; Debt / Total assets = 70 percent; compute return on assets.

You are the chief financial officer of Davidson Industries. On multiple occasions, you have engaged in insider trading but have never been able to earn any abnormal returns. Which form of market efficiency most likely exists given your situation?

Assume you buy 550 shares of stock at $12.60 per share on margin (43 percent). How much would you need to contribute to initiate this position?

Assume you buy 400 shares of stock at $9.30 per share on margin (75 percent). How much would you need to contribute to initiate this position?

Given the following financial data: Net income / Sales = 4 percent; Sales / Total assets = 2.5 times; Debt / Total assets = 45 percent; compute return on assets.

Hazel purchased 650 shares of Baby Jenae stock for $10.00 a share. The stock was purchased with an initial margin of 70 percent. The maintenance margin is 49 percent. The stock is currently selling for $4.70 a share. What is the minimum dollar amount of equity that she must have in this stock today to avoid a margin call?

Assume the real rate of return in the economy is 1.4 percent, the expected rate of inflation is 4.3 percent, and the risk premium is 4.9 percent. Compute the required rate of return.(Be sure to give the EXACT rate, not the approximate rate).