Which of the following indices is typically used to measure the performance of small-company U.S. stocks?

Assume the real rate of return in the economy is 3.6 percent, the expected rate of inflation is 4.9 percent, and the risk premium is 5.5 percent. Compute the required rate of return.(Be sure to give the EXACT rate, not the approximate rate).

A stock has an expected return of 13.55 percent and a beta of 1.7, and the expected return on the market is 9.00 percent. What must the risk-free rate be?

A benchmark index has three stocks priced at $21, $67, and $39. The number of outstanding shares for each is 424,000 shares, 427,000 shares, and 220,000 shares, respectively. If the market value weighted index was 640 yesterday and the prices changed to $25.30, $69.30, and $40.70 today, what is the new index value?

Given the following financial data: Net income / Sales = 12 percent; Sales / Total assets = 2.9 times; Debt / Total assets = 55 percent; compute return on equity.

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

You short-sell 300 shares of Krista’s Ironing Co. now selling for $30 per share. What is your maximum possible gain, ignoring transactions cost?

A stock has a beta of 0.9, the expected return on the market is 8.9 percent, and the risk-free rate is 2.8 percent. What must the expected return on this stock be? 

Hazel purchased 450 shares of Baby Jenae stock for $16.00 a share. The stock was purchased with an initial margin of 64 percent. The maintenance margin is 35 percent. The stock is currently selling for $10.30 a share. What is the minimum dollar amount of equity that she must have in this stock today to avoid a margin call?

Contributions to a traditional retirement plan are ________, and contributions to a Roth retirement plan are ________.