You live in an Eichler-built house in Cupertino California. You admire Apple so much that it is the only stock that you want in your portfolio
You have $100,000 of your own money to invest and you intend to buy more Apple on margin by borrowing an additional $40,000. Your broker will lend to you at the risk free rate, 5%, and has guaranteed the lending rate for the duration of your investment. Apple's expected return is 12% and the expected return on the market is 8%. Apple's beta is 1.25. What beta do you expect from your portfolio?
A) 1.25
B) 1.45
C) 1.55
D) 1.65
E) 1.75
E
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A) straight rebuy. B) modified rebuy. C) repetition purchase. D) new-task situation.
To which of the following does the Charter of Rights and Freedoms apply?
A) a section of the Criminal Code B) a complaint of sexual harassment by an employee of McDonald's Restaurants Ltd. C) a section of a provincial Education Act D) both A and C E) all of the above