ࡱ> sur~q` 9bjbjqPqP v::eH_$===Pj=.>,Uf?hA4BBB6C6C6CTTTTTTT$XhZUQF6C6CFFUBB4SUJJJFBBTJFTJJ:O,4PBZ? L=FO `Q|iU0UOR}[H}[4P4P}[HP6CvCTJDDDD6C6C6CUUDJd6C6C6CUFFFF6<D< Solutions Manual Chapter 03 Participating in the Market Answers to Discussion Questions 1. Explain the difference between a cash account and a margin account. 3-1. A cash account requires full payment for the purchase, while a margin account allows the investor to borrow a percentage of the securities' purchase price from the brokerage firm. The margin is the percentage of the purchase price that you must put down as payment. The amount allowed to be borrowed is 1 minus the margin percentage. 2. What is meant by the concept of minimum maintenance standards (or requirements) for margin? 3-2. There is a minimum amount of margin or equity that must be maintained in the account. This is usually equal to 25 percent of current market value of the margined security (30 percent on a short sale). If one goes below the minimum standard, additional margin must be placed in the account. Actually, many brokerage houses set standards above those cited. 3. Why is bad news good news to the short seller? 3-3. The short seller has sold borrowed stock with the intention of buying it back at a lower price in the future. Bad news is good news to the short seller because it will help drive down stock prices and make the later repurchase more profitable. 4. Explain what is meant by a limit order. How does a stop order differ from a limit order? 3-4. A limit order limits the price at which you are willing to buy or sell, and assumes that you will pay no more than the limit price on a buy or receive no less than the limit price on a sell. A stop order is similar to a limit order in that it is set to be executed at a specified price. However, a stop order is different in that it becomes a market order once that price is hit. Thus, a stop order is assured of being executed even if it is at a slightly less desirable price. A limit order can only be executed at the specified price or better and may go unfilled if there are many orders ahead of the investors at the price desired in the execution process. 5. What is the difference between day orders and GTC orders? 3-5. A day order will expire at the end of the day if not executed while a GTC (good till canceled) order will remain in effect on the specialist's book until taken off or executed. 6. On a 100-share trade, what would be the expected dollar commission with a full-service broker, a discount broker, and an online broker? 3-6. Full-Service Broker $100 Discount broker 42 Online broker 7 7. What is the difference between the meaning of the marginal tax rate and the average tax rate for a taxpayer? 3-7. The marginal tax rate applies to income within a given tax bracket (10%, 15%, 25%, etc). The average tax rate represents total taxes paid divided by taxable income. 8. Why is the Dow Jones Industrial Average considered a blue-chip measure of value? 3-8. Because the Dow Jones Industrial Average is made up of stocks of very high quality, it is considered a blue-chip measure of value. As an aside the instructor may point out that, blue chips have the highest value in a poker game with red chips in the middle and white chips having the least value. In China "red chips" have the highest value. 9. How is the Dow Jones Industrial Average adjusted for stock splits? 3-9. Each time a company splits its shares (or pays a stock dividend), the divisor is reduced to maintain the average at the same level as that prior to the change. If this were not done, the lower priced stock after the split would lower the average, giving the appearance that the index had fallen. 10. What are the criticisms and a defense of the Dow Jones Industrial Average? 3-10. The DJIA is one of the most popular indexes, but it represents only 30 blue chip stocks. It is criticized as being too selective and representing too few stocks. Its defense is that it does follow the general trend of the market and its stocks represent over 25 percent of the NYSE value. 11. Explain the price-weighted average concept as applied to the Dow Jones Industrial Average. 3-11. Each stock is weighted by its price. Equal percentage changes in high priced stocks have more impact than the same percentage change in low priced stocks. A price-weighted index is similar to what you normally use in computing averages. 12. What categories of stocks make up the Standard & Poors 500 Stock Index? 3-12. The Standard & Poor's 500 Stock Index is comprised of 369 industrials, 16 transportation firms, 48 utilities, and 67 financial firms. 13. Why was the Standard & Poors MidCap Index created? 3-13. The Standard & Poor's MidCap Index was intended to answer the complaint that the S&P 500 Index only shows the performance of larger firms. By using an index of middle size firms, portfolio managers with comparable size holdings can more accurately track their performance against an appropriate measure. 14. What is a value-weighted index? Explain the impact that large firms have on value-weighted indexes such as the S&P 500. 3-14. Each stock is weighted in the index by its own total market value as a percentage of the total market value for all firms. Total market value is equal to shares outstanding multiplied times the market price. Large firms, with significant total market value, comprise a larger percentage of the index and have more influence on the index. 15. What is an equal-weighted average? Which average has this characteristic? 3-15. Each stock in the index is equally weighted. The weight is not determined by market price or total market value. It is as if there $100 was invested in each and every stock in the index. The Value Line Index is an equal-weighted index. 16. Fill in the table for the type of weighting system for the various indexes. Put an (x) under the appropriate weighting system. Price WeightedValue WeightedEqual WeightedNYSE Composite IndexValue Line AverageS&P 500 IndexDow Jones Industrial Average 3-16. NYSE Composite Index Value-Weighted Value Line Index Equal-Weighted S&P 500 Index Value-Weighted Dow Jones Industrial Average Price-Weighted 17. If you did not wish a high-priced or heavily capitalized firm (one with high total market value) to overly influence your index, which of the weighting systems described in this chapter would you be likely to use? 3-17. Equal-weighted index. 18. Why might one say that the Wilshire 5000 Equity Index is the most comprehensive market measure? 3-18. The Wilshire 5000 Equity Index is the most comprehensive index and represents the total dollar volume of all U.S. equity issues with readily available price data from the NYSE, AMEX, and Nasdaq stock markets. Originally the index included close to 5,000 stocks but as the equity markets have grown it now includes more than 5,000 stocks. By the very fact of including total dollar volume, it is a value weighted index. 19. If the Russell 2000 Index is outperforming the Russell 1000 Index, what can you generally assume about the relative performance of smaller versus larger stocks? 3-19. Since the Russell 2000 represents the smallest stocks out of the Russell 3000 and the Russell 1000 represents the largest stocks, you can generally assume the smaller stocks are outperforming the larger stocks. Problems Margin purchase 1. Assume you buy 100 shares of stock at $40 per share on margin (50 percent). If the price rises to $55 per share, what is your percentage gain on the initial equity? 3-1.  EMBED Equation.DSMT4  $3,500 " $2,000 = $1,500 gain  EMBED Equation.DSMT4  = 75% gain Margin purchase 2. In problem 1, what would the percentage loss on the initial equity be if the price had decreased to $28? 3-2.  EMBED Equation.DSMT4   EMBED Equation.DSMT4  Minimum margin 3. Assume you have a 25 percent minimum margin standard in problems 1 and 2. With a price decline to $28, will you be called upon to put up more margin to meet the 25 percent rule? Disregard the $2,000 minimum margin balance requirement. 3-3.  EMBED Equation.DSMT4  You are still above the 25 percent minimum margin standard. Minimum margin 4. Recompute the answer to problem 3 based on a stock decline to $23.75. 3-4. First compute the equity position:  EMBED Equation.DSMT4   EMBED Equation.DSMT4  You are now below the 25 percent minimum margin standard, and you will be called upon for more margin. Selling short 5. You sell 100 shares of Norton Corporation short. The price of the stock is $60 per share. The margin requirement is 50 percent. a. How much is your initial margin? b. If stock goes down to $42, what is your percentage gain or loss on the initial margin (equity)? c. If stock goes up to $67.50, what is your percentage gain or loss on the initial margin (equity)? d. In part c, if the minimum margin standard is 30 percent, will you be required to put up more margin? (Do the additional necessary calculations to answer this question.) 3-5. a)  EMBED Equation.DSMT4  b)  EMBED Equation.DSMT4  c)  EMBED Equation.DSMT4  d) To answer this question, you must compare the current margin position to the market value of the stock.  EMBED Equation.DSMT4  You will not be required to put up more margin as 33 percent exceeds 30 percent. Margin purchase and Selling short 6. You are very optimistic about the personal computer industry, so you buy 200 shares of Microtech Inc. at $45 per share. You are very pessimistic about the machine tool industry, so you sell short 300 shares of King Tools Corporation at $55. Each transaction requires a 50 percent margin balance. a. What is the initial equity in your account? b. Assume the price of each stock is as follows for the next three months (month-end). Compute the equity balance in your account for each month: MonthMicrotech Inc.King Tools Corp.October$51$48November3962December3740 3-6. a)  EMBED Equation.DSMT4  b) Monthly gain or loss in margin and new equity balance.  EMBED Equation.DSMT4  New equity balance $12,750 + $3,300 = $16,050  EMBED Equation.DSMT4  New equity balance $16,050 " $6,600 = $9,450  EMBED Equation.DSMT4  New equity balance $9,450 + $6,200 = $15,650 Commission percentage 7. Lisa Loeb is considering buying 100 shares of CMA Record Company. The price of the shares is $52. She has checked around with different types of brokers and has been given the following commission quotes for the trade: online broker, $7; discount broker, $45; full-service broker, $98. a. Compute the percentage commission for all three categories. b. How many times larger is the percentage commission of the full-service broker compared with the online broker? Round two places to the right of the decimal point for this answer. 3-7. a)  EMBED Equation.DSMT4  b)  EMBED Equation.DSMT4  c) It is lower than yield to maturity because it does not take into consideration the fact that the bond price will increase from $839.27 to $1,000 over the next 15 years. This increases the yield to maturity. Computing tax obligations 8. Compute the tax obligation for the following using Table 31 on page 52. a. An individual with taxable income of $59,000. b. A married couple with taxable income of $130,000. c. What is the average tax rate in part b? 3-8. a.  EMBED Equation.DSMT4  b.  EMBED Equation.DSMT4  c.  EMBED Equation.DSMT4  Capital gains tax 9. Gill Thomas is in the 35 percent tax bracket. Her long-term capital gains tax rate is 15 percent. She makes $16,200 on a stock trade. Compute her tax obligation based on the following holding periods: a. 6 months. b. 14 months. 3-9. Holding Period Profit Tax Rate Taxes a. 6 months $16,200 35% $5,670 b. 14 months $16,200 15% $2,430 Selling short and capital gains 10. Al Rodriguez sells 500 shares of Gold Mine Corp. short at $80 per share. The margin requirement is 50 percent. The stock falls to $62 over a three-month time period, and he closes out his position. a. How much is his initial margin? b. What is his percentage gain or loss on his initial margin? c. If he is in a 35 percent tax bracket for short-term capital gains and a 15 percent bracket for long-term capital gains, what is his tax obligation? d. If the stock went up to $94 instead of down to $62, what would be his dollar loss? e. Assuming this is his only transaction for the year (2007), how large a tax deduction could he take against other income? 3-10. a)  EMBED Equation.DSMT4  b)  EMBED Equation.DSMT4  c) Since he only had the position for three months, he must treat the profit as a short-term capital gain. This means it will be taxed at 35 percent.  EMBED Equation.DSMT4  d) Loss ($80 - $94) ( 500 = ($7,000) e) The maximum tax write-off in any one year for net investment losses is $3,000. That is the maximum amount A1 can write off in the year of the loss. Sidenote: the remaining $4,000 can be carried forward into the future. Price-weighted average 11. There are three stocks in a price-weighted index: A $100 B 20 C 60 a. What is the average value for the index? b. Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index? c. Explain why in part b the average changed with two stocks moving up and down by the same percentage amount. 3-11. a.  EMBED Equation.DSMT4  b.  EMBED Equation.DSMT4  c. The price-weighted average gives a higher weighting to high priced stocks than to low priced stocks. Thus the 25 percent decline on the $100 stock had a greater impact than the 25 percent rise on the $20 stock. Computing an index 12. Assume the following five companies are used in computing an index: CompanyShares OutstandingBase Period January 1, 1984 Market PriceCurrent Period December 31, 2007 Market PriceA6,000$ 6$12B2,000518C10,000840D1,0002010E4,0001532 a. If the index is price weighted, what will be the value of the index on December 31, 2007? (Take the average price on December 31, 2007, and divide by the average price on January 1, 1984, and multiply by 100.) b. If the index is value weighted, what will be the value of the index on December 31, 2007? (Take the total market value on December 31, 2007, and divide by the total market value on January 1, 1984, and multiply by 100.) c. Explain why the answer in part b is different from the answer in part a . 3-12. a)  EMBED Equation.DSMT4   EMBED Equation.DSMT4   EMBED Equation.DSMT4  Alternative Calculation  EMBED Equation.DSMT4  b) Base Period Current Period Shares Market Total Market Total Company Outstanding Price Value Price Value A 6,000 6 $36,000 $12 $72,000 B 2,000 5 10,000 18 36,000 C 10,000 8 80,000 40 400,000 D 1,000 20 20,000 10 10,000 E 4,000 15 60,000 32 128,000 $206,000 $646,000  EMBED Equation.DSMT4  c) Stock C with a fivefold increase in price was heavily weighted in Part b. Stock D with a 50 percent decline was lightly weighted in Part B (yet it was important in Part a). These factors help to explain why the value-weighted index in Part b produced a higher answer than the price-weighted index in Part a. Changing index values in a value-weighted index 13. Assume the following stocks make up a value-weighted index: CorporationShares OutstandingMarket PriceReese 4,000$35Robinson16,000 4Snider 6,000 10Hodges40,000 20 a. Compute the total market value and the weights assigned to each stock. Round to two places to the right of the decimal point. (The weights may add up to slightly more than 100 percent due to rounding.) b. Assume the price of the shares of the Snider Corporation go up by 50 percent, while those of the Hodges Corporation go down by a mere 10 percent. The other two stocks remain constant. What will be the newly established value for the index? c. Explain why the index followed the pattern it did in part b. 3-13. a) Shares Market Total Value Corporation Outstanding Price Weight Reese 4,000 $35 $140,000 13.16% Robinson 16,000 4 64,000 6.02 Snider 6,000 10 60,000 5.64 Hodges 40,000 20 800,000 75.19 $1,064,000 100.01% or approx. 100% b) Shares Market Price Total Value Corporation Outstanding Reese 4,000 $35 $140,000 Robinson 16,000 4 64,000 Snider 6,000 15* 90,000 Hodges 40,000 18** 720,000 $1,014,000 *$10 ( 150% = $15 **$20 ( 90% = $18  EMBED Equation.DSMT4  c) Hodges Corporation has an initial weight of 75.19 percent in the index, while Snider Corporation is only weighted as 5.64 percent. Therefore, a 10 percent decline in Hodges Corporations stock turns out to be more important than the 50 percent gain in Snider Corporations stock. Changing index values in a value-weighted index 14. In problem 13, if the initial price of the shares of the Snider Corporation double while those of the Hodges Corporation go down by 7.5 percent, would the value of the index change? The other two stocks remain constant. Do the necessary computations. 3-14. Compute the new total value of the index. Shares Market Total Corporation Outstanding Price Value Reese 4,000 $35 $ 140,000 Robinson 16,000 4 64,000 Snider 6,000 20* 120,000 Hodges 40,000 18.50** 740,000 $1,064,000  EMBED Equation.DSMT4   EMBED Equation.DSMT4  The value of the index would remain unchanged. Once again the heavy weighting of the Hodges Corporation in comparison to the Snider Corporation tends to overcome price change differentials. Chapter 3 Solution to the Investment Advisor Problem Her loss from the initial purchase price is $1.53 ($25.00 $26.53). Based on 400 shares, this represents $612. $1.53 Loss per share x 400 Number of shares $612 Total loss Thus, her current margin is down to $4,388. Initial Margin $5000 Loss 612 Current margin $4,388 Percent loss on initial margin =  EMBED Equation.DSMT4 89XYZ]Z H I U V Z < = J K O _ϴymyayyayh;B*^JaJphh _(CJOJQJ^Jh` h;CJOJQJ^Jh;h;5CJOJQJ^Jh;5CJOJQJ^Jh;h;B*^JaJph#h;h;5B*\^JaJphh~N5CJ aJ h~Nh~N5CJ aJ h zI5CJ aJ hy5CJ aJ h0e5CJ aJ h55CJ aJ &89YZ U V J K # ^`gd; 0^`0gd; 7$8$H$gd; 7$8$H$gdE $7$8$H$a$gd58_~#$('(fgk126()348 TUZ|}̽̽̽̽̽̽̽h;B*^JaJphh;h;5CJOJQJ^Jh;5CJOJQJ^Jh;h;B*^JaJph#h;h;5B*\^JaJph h5aJh` h;CJOJQJ^JhF?CJOJQJ^J9#$fg1234TU|} 7$8$H$gd; 0^`0gd;Ma$>ny^{ A`klLW]a@AF348ӺӺӺӺӺh;B*^JaJphh;h;B*^JaJph#h;h;5B*\^JaJphh;5CJOJQJ^JhF?CJOJQJ^Jh` h;CJOJQJ^Jh;h;5CJOJQJ^Jh5CJOJQJ^J7@A34$$7$8$H$Ifa$gde@ 7$8$H$gd; 0^`0gd;8 -5QYZ_ 3 D E H g ?!@!𴨙mm#h;h;5B*\^JaJphh;5CJOJQJ^JhF?5CJOJQJ^Jh` h;CJOJQJ^JhF?CJOJQJ^Jh;h;5CJOJQJ^Jh;h;B*^JaJph h;h;5B*^JaJphh;B*^JaJphh;h;B*^JaJph*;--- $7$8$H$Ifgde@kd$$Ifl֞ <( FF t644 la$$7$8$H$Ifa$gde@>kd$$Ifl֞ <( FF t644 la $7$8$H$Ifgde@ .>kd*$$Ifl֞ <( FF t644 la $7$8$H$Ifgde@./012345>kdT$$Ifl֞ <( FF t644 la $7$8$H$Ifgde@5RSTUVWX $7$8$H$Ifgde@XYZLC6--^gd; 0^`0gdF? 7$8$H$gd;kd~$$Ifl֞ <( FF t644 la P!Q!!!H""""###$$$$$C% 7$8$H$gd_{gdE 7$8$H$gdR[ 7$8$H$gd; 0^`0gd;^gd;@!P!Q!V!u!v!!!!!!!H"I""""""##O#P######~$$$$$$¸{o{h^ZhEh}hE5; h655;h;CJOJQJ^Jh` h;CJOJQJ^Jh;h;5CJOJQJ^Jh;B*^JaJph#h;h;5B*\^JaJphhR[hR[6] hR[hR[hR[CJOJQJ^JaJhR[h;h;5h;5CJOJQJ^Jh;h;B*^JaJph!$$$$$$B%C%D%H%I%J%a%b%c%d%>&@&n&p&r&t&&&&J'L'''''''Ŷ{qbSh_{h(dIB*^JaJphh}5B*\^JaJphj h\AEHUjp&J h\AUVjhhl7EHUjh^J hl7CJUVaJjh\AUh\Ah\Ah\A5h_{hwB*^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}h}5 h}5 C%D%e%&&'''(((( )])m)))))**** 0^`0gd65 dh^gd65 d^gd} 7$8$H$gd_{''''''''''((((\(](((((()))))))])ɼqi^Tjh\AEHUjq&J h\AUVh\Ah\A5h_{h(dIB*^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphj/hch EHUj^J h CJUVaJjh\AUjU h(dIh EHUj^J h CJUVaJh\A])^)m)p))))))))))))**********++7+:+a+++|rnbPPb#h_{h_{6B*]^JaJphh_{B*^JaJphh9jch\AEHUjl*J h\ACJUVaJjIh(dIh(dIEHUjBC]J h(dICJUVaJjh\AUh\Ah\Ah\A5 h(dI5h_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJph*+7+++,,,,,,-------.=/l/ 0^`0gd65 p0^p`0gd9 p`^p``gd65^gd65 7$8$H$gd_{h7$8$H$^h`gd65+++++, , ,/,O,,,,,,,,,,,,,,,,,,,,,,,,, ---ûvg]j(h\AEHUjQ,J h\ACJUVaJj$h\AEHUj*J h\ACJUVaJh\={j h h EHUj`^J h CJUVaJjh\AUh\Ah\Ah\A5h_{h65B*^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{6B*]^JaJph$------@-`-----------..a.b.....=/@/l/o/////00ʻ||pah_{5B*\^JaJphh(dIB*^JaJph#h_{h_{6B*]^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh65j,h\AEHUj0*J h\ACJUVaJhh9h\={h\Ajh\AU#l///0000(0$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@ 7$8$H$gd_{h7$8$H$^h`gd65(0)0105090m_NN$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kd0$$IfTlFf t06    44 laT0)0X0Z0[0_0c0d0{0|0}0~000000000 1 1 1 1$1%1&1'1L2N2R2so`SOh\={j<h<2ih<2iEHUjD]J h<2iCJUVaJhjg8h(dIh(dIEHUjD]J h(dICJUVaJh(dIj3h\AEHvUjz*J h\ACJUVaJjh\AUh\Ah\Ah\A5h_{5B*\^JaJphh\Ah\AB*^JaJphh\Ah\AB*^JaJph#h\Ah\A5B*\^JaJph90:0C0F0I0m_NN$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kd1$$IfTlFf t06    44 laTI0J0S0V0Y0m_NN$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kdM2$$IfTlFf t06    44 laTY0Z0[00000 1(1L2N2md[[[[[[[[^gd65 7$8$H$gd65kd2$$IfTlFf t06    44 laT R2T22222223333*4+4w4x44444555E5b5z5{5555555˼}}qiZj(,J h\ACJUVaJh\Ah\A5h<2iB*^JaJph#h_{h_{6B*]^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJphjoAh\AEHUj,J h\ACJUVaJh\Ajh\AUN22223445556667P7777780d^`0gd} 7$8$H$gd 0^`0gd65 d^gd}L7$8$H$^`Lgd65 7$8$H$gd_{^gd655555555556666 777"7P7S777777777777龯ppppd\Mj,J h\ACJUVaJh\Ah\A5hB*^JaJph#h_{h_{6B*]^JaJphh<2iB*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJphjIh<2ih<2iEHUjE]J h<2iCJUVaJh\Ajh\AUjEh\AEHU7777777777788888'8*8w8x888889999999"9$9*9,94959騖{{iia\\\\ h\A>*h\Ah\A5#h_{h_{6B*]^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphjmWh\AEHUj *J h\ACJUVaJjKRh\AEHUj,J h\ACJUVaJh\Ajh\AUjMh\AEHU$8'8899;9]999j:::b;;4<Z<z<{<=0=V== 0^`0gd65h7$8$H$^h`gd650d^`0gd}L7$8$H$^`Lgd65 7$8$H$gd_{59;999999<:=:j:m:::::;!;b;e;;;;;<<3<4<5<:<><?<V<W<X<Y<^<_<v<w<ƺƺƨƨƨƺƨƺƨƺƺ}pajc!*J h\ACJUVaJj[h\={h\={EHUjī^J h\={CJUVaJjh\AUh\Ah\A5hB*^JaJph#h_{h_{6B*]^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh\A h\A>*&w<x<y<z<{<==,=-=.=/=E=F=6>7>N>R>>>>>>>>>>>>?Y?\?p?r????鶧zzzhh\hh\h_{B*^JaJph#h_{h_{6B*]^JaJphh\AB*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJph jh\Ajbh\AEHUj&,J h\ACJUVaJh\={h\Ajh\AUj^h\AEHU#=6>N>>>>>>Y??? @@@@@AAAIA\AAA $7$8$H$Ifgd\AL7$8$H$^`Lgd65 7$8$H$^gd\A 7$8$H$gd_{ 0^`0gd65?????????? @ @ @ @@@@@@@A?A@AAAHAǽ󪛉}nbSEh\A5B*^JaJphh_{5B*\^JaJphh_{B*^JaJphh_{h_{B*^JaJphh\AB*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJphh65jjh\AEHUj,J h\ACJUVaJjfh\AEHUj&J h\AUVjh\AUh\Ah\Ah\A5HAIA[A\AAAAAABBB+BKBBBBBC CiCjCCCCCCDDDD D D$Dôxpldljh\AUh\Ah\Ah\A5h5B*\^JaJphh_{B*^JaJphh_{h_{B*^JaJph#h_{h_{6B*]^JaJphh\A6B*]^JaJphh\Ah\AB*^JaJphh\Ah\AB*^JaJphh\A5B*^JaJph h\Ah\A5B*^JaJph!AAAAAA^PPPP $7$8$H$Ifgde@kdn$$Ifl\:," t0644 laAAAAAA^PPPP $7$8$H$Ifgde@kdn$$Ifl\:," t0644 laAAAAAA^PPPP $7$8$H$Ifgde@kd6o$$Ifl\:," t0644 laAAAAAA^PPPP $7$8$H$Ifgde@kdo$$Ifl\:," t0644 laAAAAAA^PPPP $7$8$H$Ifgde@kd^p$$Ifl\:," t0644 laABBBCD(D^UDDD;^gd65L7$8$H$^`Lgd65 7$8$H$gd_{kdp$$Ifl\:," t0644 la$D%D&D'D(D)D@DADBDCDDDED\D]D^D_D`DaDcDzD{D|D}DDDDDDDDDDDEEEEEEEEںڬ{{{{pjՆ&J h\AUV h\A>*h65j}h\={hKEHUj^J hKCJUVaJjh\={Uh\={hKjyh\AEHUj&J h\AUVj]vh\AEHUjڄ&J h\AUVh\Ajh\AUjqh\AEHtUj,J h\ACJUVaJ((DDD`DaD{D|DDDDD E(ECE`E|EEEEEG5GuGvG 7$8$H$gd_{^gd65  Lgd65^gd65 ^`gd65EEEEEGG5G9G_GnGtGuGvGGGGGGGGGGGGGǵvdUIUIUIUIUIUhKB*^JaJphh\Ah\AB*^JaJph#h\Ah\A5B*\^JaJphh_{5B*\^JaJphh_{h_{B*^JaJph#h_{h_{6B*]^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphh655B*\^JaJphh65h\Ajh\AUjh\AEHUvGGGGGGGGUkdۃ$$IflF ,"   t06    44 la$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@GGGGGtfUU$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kdb$$IflF ,"   t06    44 laGGGGGtfUU$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kd$$IflF ,"   t06    44 laGGGGGtfUU$$7$8$H$Ifa$gd\A $7$8$H$Ifgde@kdp$$IflF ,"   t06    44 laGGGHIIIJtkZZkNE^gd65 d^gd}h7$8$H$^h`gd65 7$8$H$gd_{kd$$IflF ,"   t06    44 laGGGG#HCHHHHHHI^I_IIIIIIIIIIJJJJ.K0K:K*h\Ah\Ah\A5 h655h_{B*^JaJphh_{h_{B*^JaJph#h_{h_{6B*]^JaJphh\A6B*]^JaJphh\Ah\AB*^JaJph5JJDJdJJJJJJJK(KEKhKKKKKKKKKMMJM 7$8$H$gd_{^gd65 Lgd65gd65  gd65KKKKKKMMMJMNMMMMM:N;NINJNONNNNNNNNNNNOO OO%O'O/O4O*hKhW h\A5 h655h_{B*^JaJphh_{h_{B*^JaJph#h_{h_{5B*\^JaJphh}5B*\^JaJphhh65h\Ajh\AUj~h\AEHUjō&J h\AUV+JMINJNzNNNNNO*CJaJU!jho+hiWCJEHUaJjjrdJ hiWCJUVaJjhiWCJUaJhiW>*CJaJhwIhiWCJaJhwIhiW>*CJaJhiWCJaJhfhiW5CJ aJ hf==jˌh\AEHUj",J h\ACJUVaJh65h\Ajh\AUjh\AEHU#PPQQQQ2Q3Q_Q`QyQzQQQQQQXkl^gdiW & FgdiWgdiW^gdiW8^8gdiWh^hgdiW$612 $5000 = 12.24% First find the expected value of the future price of the stock. 60% x $28 = $16.80 40% x $21 = 8.40 Expected Value $25.20 While this is greater than the price at which she shorted the stock ($25), more importantly it is lower than the current price of the stock ($26.53). Based on the expected value, she should continue to maintain the short position (Assuming the probabilities are correct and that Carol can withstand the pressure.)     Chapter 03 - Participating in the Market PAGE  3- PAGE 1 3- PAGE 15 34'($a$gd 8&`#$gd 8gdE h8h^hgdiWgdiW p^p`gdiW #$%&'(*+12456789ܣܣjhTh;JBCJUhTh;JBCJhyCJmHnHujh 8h;JBCJU h;JB0Jjh;JB0JUh;JBh":'h;JBCJh":'h":'CJ h;JBCJh 8h;JBCJhImjhImUh\Aho+hiWCJaJ'(6789gdE$a$gdT901hP:pm/ =!"#$% 901hP:pT/ =!"#$% $$If!vh5 5F5555F5#v #vF#v#v#v#vF#v:Vl t065 5F5555F5($$If!vh5 5F5555F5#v #vF#v#v#v#vF#v:Vl t065 5F5555F5/ / / ($$If!vh5 5F5555F5#v #vF#v#v#v#vF#v:Vl t065 5F5555F5/ / / ($$If!vh5 5F5555F5#v #vF#v#v#v#vF#v:Vl t065 5F5555F5/ / / ($$If!vh5 5F5555F5#v #vF#v#v#v#vF#v:Vl t065 5F5555F5/ / / Dd &{b  c $A? ?3"`?28醶Gct``! 醶Gct`B @(pE@ xVMlE~36㶪 L&ULi!R\"dTm +9vZCUEH\pAr@ čCc\j Hz?Mb&͛73of /C:| kYommI-v{YGh c0[K4]UQ1k5.[g}Q :XGH1?A>%Zx g8y!>g/[UUMO#؄W}.f~,B:6!:KF$G (TKB2.1Bw+pJu{rZ7=uWbRPz4m\jq:j{εύ|tij%#]M*3|~*<޻k~|R&v+R<쭶5F/IsmDʊ]k$%;4"gժ#PGvK~4^]>Ǽ*~C!GsKzRJ05 πr J䧏~K욻:M;GgSuތtˤ@nT7 bٙvYj/ʋV\0̀R2ʕW*UIgDjbBʯOxb>˂{ghc9ⴷ.=ߘF#{8U{EP圣Z9@)[ &IW(y`>'@P! ,@5QQ&AU 5,3`Gi7Fg__)yFH>_FX cfT~/ZU|\s$I/R,Em t/ny d:!F2OZVK$EDhȳm>3n.t~[|[%</IrlZƋš E1?IkCݿDd 0  # A2;աRK;8 `!աRK;80 dxڥRkA즶1 z(nw,H0)\h ?$Ԝ ":Kc'U+}l]]rps!3JY4Q c?8_IkC1d?4*1:2}˚O ,p۝^<*ߊʷO>Cj^bKMϛ/0(vSI뿊Պ'*U xVoG~36kaǀ**C䂃bXYQ-IT KXɱvd,$~"UA'S{ Ugȁ `RfMH1̛7f< @8`A8cmMiem_( _B?ðIXxoxQm ̚klQ XG37a>$Z6ڎ$>~_7FdUV]\./%-&;7)|&4yÈDt|0l[`+YmA F؂mx ExD<=/=ߢEٶ%'14 c&iY/)!uJfc)px  !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghiklmnopqtwx{yz|}Root Entry FЊ/v@Data jMWordDocumentvObjectPool1 Њ/_1247717480EF Ole CompObjiObjInfo  !$'()*+,-./0123456789:=@ABCDEFGJMNOPQRSVYZ[\]^_`abehijklmpstuvwxyz{|} FMathType 6.0 Equation MathType EFEquation.DSMT49q,R DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  100$4Equation Native _1244033193 FOle CompObj i0             = $4,000 Price increases: 100$55  = $5,500Loan                   =   "-2,000 Loan                                       "-2,000Initial Equity ==$2,000 Equity(Ending)  $3,500 FMathType 4.0 Equation MathType EFEquation.DSMT49q @6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_EObjInfo Equation Native (_1247717518FOle "_A   $1,500$2,000 FMathType 6.0 Equation MathType EFEquation.DSMT49q4R$DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APCompObj#iObjInfo%Equation Native &_1247717549hFG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  100$40             = $4,000 Price decreases: 100$28 = $2,800Loan                   =   "-2,000 Loan                                        "-2,000Initial Equity ==$2,000 Equity (Ending)  $800 FMathType 6.0 Equation MathType EFEquation.DSMT49q R,DSMT6WinAllBasicCodePagesOle ;CompObj<iObjInfo>Equation Native ?Times New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  $800 "- $2,000 = "-$1,200 loss   -$1,200$2,000==60%loss_1244033421 wFOle HCompObjIiObjInfoK FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   EquitEquation Native L_1247626050FOle TCompObj UiyMarketValue== $800$2,800==28.57% FMathType 6.0 Equation MathType EFEquation.DSMT49qObjInfo!WEquation Native X_1244273772$FOle cŽR DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  MarketValue==100$23.75 $2,375 Loan     "-2,000Equity(Ending)  $375 FMathType 4.0 Equation MathType EFEquation.DSMT49qZ@6M6GDSMT4WinAllBasicCodePagesCompObj#%diObjInfo&fEquation Native g_1247717984)FTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   EquityMarketValue== $3752,375==15.79% FMathType 6.0 Equation MathTyOle nCompObj(*oiObjInfo+qEquation Native rpe EFEquation.DSMT49q$R,DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  100$60==             $6,000Margin   50%InitialMargin(equity)            $3,000 FMathType 4.0 Equation MathTy_1244274125;.FOle ~CompObj-/iObjInfo0pe EFEquation.DSMT49qZJ@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Profit($60"-$42)100  $1,80Equation Native f_1244449105,@3FOle CompObj24i0  ==60%Gain Initialmargin(equity)  $3,000 FMathType 5.0 Equation MathType EFEquation.DSMT49qObjInfo5Equation Native {_12442742248FOle A_ tDSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Loss($60"-$67.50)100  "-$750  ==25%LossInitialmargin(equity)  $3,000 FMathType 4.0 Equation MathType EFEquation.DSMT49qZk@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APCompObj79iObjInfo:Equation Native _12442742986c=FG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Initialmargin(equity)  $3,000Loss     750Currentmargin(equity) $2,250Currentmargin(equity)  $2,250  ==33%    6,750 FMathType 4.0 Equation MathType EFEquation.DSMT49qOle CompObj<>iObjInfo?Equation Native Z@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Microtech 200$45==$9,000Margin   50%Initialmargin(equity)   $4,500KingTools 300$55==$16,500Margin   50%Initialmargin(equity)    8,250 Totalmargin(equity)  $12,750 FMathType 6.0 Equation MathType EFEquation.DSMT49q_1247626397^BFLOle CompObjACiObjInfoDEquation Native u_1247626475TGFLLOle CompObjFHiYRDSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A      OctoberMicrotech Gain($51"-$45)200==++$1,200KingTools Gain($55"-$48)300== ++$2,100  TotalGain  $3,300 FMathType 6.0 Equation MathType EFEquation.DSMT49qZRDSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A      NovemberMicrotech Loss($39ObjInfoIEquation Native v_1244449509LFLLOle "-$51)200=="-$2,400KingTools Loss($48"-$62)300== "-$4,200  TotalLoss  "-$6,600 FMathType 5.0 Equation MathType EFEquation.DSMT49qA tDSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A      DeCompObjKMiObjInfoNEquation Native _1244449576JYQFLLcemberMicrotech Loss($37"-$39)200=="-$400KingTools Gain($62"-$40)300== 6,600  NetGain  $6,200 FMathType 5.0 Equation MathType EFEquation.DSMT49qA tDSMT5WinAllBasicCodePagesOle CompObjPRiObjInfoSEquation Native     !"#$%&'()*+,-03456789:;<=>?@ABCDEFGHIJKNQRSTUVWZ]^_`abcdefilmnopqrsvyz{|}~Times New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  onlinebroker  $7/$5,200 ==.13%discountbroker $45/$5,200 ==.87%full-sevicebroker $98/$5,200 ==1.88% FMathType 6.0 Equation MathType EFEquation.DSMT49qRDSMT6WinAllBasicCodePages_1247626685VFLLOle  CompObjUW iObjInfoXEquation Native _1244450526[FLLOle CompObjZ\iTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   full - servicebrokeron - linebroker== 1.88%.13%==14.46x FMathType 5.0 Equation MathType EFEquation.DSMT49qAU tDSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A    AmoObjInfo]Equation Native q_1244451317O|`FLLOle .unt  Rate   Tax1 st  X$7,300 10% tttt$ 730Next 22,400  15% 3,360Next 29,300  25% 7,325 $59,000    $11,415      FMathType 5.0 Equation MathTyCompObj_a/iObjInfob1Equation Native 2F_1244274931meFLLpe EFEquation.DSMT49qA* tDSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A    Amount  Rate   Tax1 st  $14,600 10% $ 1,460.00Next 44,800  15% 6,720.00Next 60,550  25% 15,137.50NextL1L0L,L0L5L0  28%  2,814.00 $130,000   $26,131.50      FMathType 4.0 Equation MathType EFEquation.DSMT49qOle LCompObjdfMiObjInfogOEquation Native PZ@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   taxestaxableincome== $26,131.50130,000.00==20.10%_1247718340'jFLLOle XCompObjikYiObjInfol[ FMathType 6.0 Equation MathType EFEquation.DSMT49q‹ R,DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A        Equation Native \_1244275043oFLLOle gCompObjnphi               500 shares$80 = $40,000Initial Margin(equity) at 50% =$20,000     FMathType 4.0 Equation MathType EFEquation.DSMT49qZ @6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   Profit($80"-$62)ObjInfoqjEquation Native k<_1244451366tFLLOle t500Initialmargin(equity)== $9,00020,000==45% FMathType 5.0 Equation MathType EFEquation.DSMT49qCompObjsuuiObjInfovwEquation Native x5_1244037778yFLLA DSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Profit     $9,000TaxRate     35%Taxobligation    $3,150 FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_EOle CompObjxziObjInfo{Equation Native _A  A $100B 20C  60 $1803==$60 FMathType 5.0 Equation MathType EFEquation.DSMT49q_1244451810r~FLLOle CompObj}iObjInfoA DSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  A $100 .75 ==$75B 201.25 ==Equation Native _1244452007FLLOle CompObji25C 601.00 == 60   ==$1603==$53.33 FMathType 5.0 Equation MathType EFEquation.DSMT49qObjInfoEquation Native N_1244038362FLLOle A2 tDSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A   BasePeriodCurrentPeriod  Company  MarketPrice  MarketPriceA  $6  $12  B  5  18C  8 40D 20  10E  ,1,5  32   D DD$D5D4   $112 CompObjiObjInfoEquation Native _1244038406FLL FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Averageprice== $545==$10.8  $1125==$22.4 FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesOle CompObjiObjInfoEquation Native Times New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Index== $22.4$10.8100==2.07100==207_1247718677FLLOle CompObjiObjInfo FMathType 6.0 Equation MathType EFEquation.DSMT49q$R,DSMT6WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Index== $112$54Equation Native _1244038869FLLOle CompObji100==2.07100==207 FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APObjInfoEquation Native _1244040645FLLOle G_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Index== $646,000206,000100==3.14100==314 FMathType 4.0 Equation MathTy     # !"*+$%&'()Z-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYI4b"jXkYv\;)⨈udS##$?oATw UbBVav1JLI'2Xlm 9oձbOH_KqO0J\Z$ǃ Nš E1kꝥҶ Dd b  c $A? ?3"`?2e$F^jwQs`!e$F^jwQF 1dxڥToA3 -E &VjbS-҃$R@`b5l r L&&zAǡמ4v{eba~70r|89ccI69S#(CA)¹| +6PS}#6Yb#䛫,16Wfu׍a+ w[p }{ kOF$.uZ,4d8~ˮ 8.D4>*Q3-K>MDFB+/opI>1%g\kn*.ie"sTo =B]e>ۉ[QX9}_=ﯕeX/&nVZmbUo;raAoa͉)MUI"xYMgԲ ^+OG~&;kOݥP0MK7kϔrvWJຖC)eJY~` 9af=,.g-2o}8Q]!0Ke'M\I` hQcÀ 5%!('PN ϦmC1u,p~[H54KƐ6|жV:u&<؍8?g eDd 0  # A2#[N# j(`!#[N# j`@xڥToA3TD@I@Mؔ [؃F(zJG K4LѓɃ'cx1kb4ߛ&:͏770H Pqlx<,پixNE#槂0 c B!WvTq<ޟ/"=ʁ :O>7í,_o+3fePԻkz?vZ~{K i?ԝ^3ao`,RTQ=O$WU;T 'ݧaU ΖnTFOqPaDA>GVx'OkbҠn@?r z͜ xSYgcv>=@`!8>SYgcv>=# xڥTMLSAVZ1m?Fcj(A#!P6GhHЄb," oo^4R/Xg^;~33o2pH- fcGz.X2֎sӮw6dn8u2ǃRE @/êjntOuւq?ڃ{;l)kCII]c0&Swa.%Zw][dj|WzQ|ʷAǐNDܒV6(Ppd ܇*KhG"X[(2<s,Q@̶LeL(( |{qScsb(bPd擙^?V蓈ks.g7fƞ%+Yl)};]VeeE1?#Uii)@>HԅOمss&fk7p*5wƳڴk^^ksI-GJڢ1_dSN-"t㾖O:ZvVK iDj}ZE\$p_b"?ne@?9-÷@|M8*A`@#( Ihֶ9 .n)&귰o7  !l #3ILbci\$M.va$4Koye23 ]6:+^wk:qȀ 9&. '``Aٱér1V1ävRäHYnzmDgqE Py^8ȧx>8Fwk thxݞ^]l"YegT=/U=++/6g kJeIo7~hB4h=Gn9!f !nqpT.R̰_*!45sl%e$RI s% w8}71<AL":A`/ȊvHNds$i8AL=;҇;tzo`pIܹfU ?ַ"q>6[Fz|VbW"~IwDd $b  c $A? ?3"`?2<6_w[J9!`!<6_w[J `;$HD xڥTOQ۶J$h1@,z !@#)z,UVjCx1xd42<Dd \   c $A ? ?#" `2Nٸ6dy_* %`!"ٸ6dy_`$ȕ8xڥTOA~3GmhI!@@!Ą `4Rf肛l.B/H/`NcIo^_`zQc}of'wwy7o73 @^l1bZ ";Nq;N0*`+T `BQ+s'UkAza>A#?-dj'2jK8'wSďjlv^ftެ||M40~$Hl\vtzcZlloXb6u} `>bO,z[2<" TQ_\G\)?m6S2znʹ{ )F4M-Tb{0ނ=e/Px|6 5E1#KJւ)tl+ZcL;T(td\X^4pvi1[zô5[3FR_3 fQ d7r DTgbM١x ϥhǡtWJi"JJzR)ϣOϦz9$ U@TTnn%X%0  F{C'м5sDx`}588{hOQLHnNqw:&Huw&노ݾkm9D/.ߵIK-/w3R]# kXANq2i&+nVv?\}F}-B12?JTq Dd |J   C A ? " 2`W+C80< )`!4W+C80v`"J5`\xڥTKkQ>$GU𝆴iJP mtc;ͤ٨InJ]nrՅF *s̤Lw3=s0hr0ggGhGP'2̀g?,ʘe`Z/' 4*߂ Q z0v^&hg|7鷙Y< =m>V378/ku a06좤8 +hDT`4#P; V= 0#aa7yffdu u+ pLfjnIτU=_*b>tm??`gVt1l[qQH\!})xp=Z~gM4NǺDvUn$w0pD=KFUC<]f%y%K1]Zz>Z:l>~:uCZe4=F$'j1s tb=dF]sl J ),a=C)^)P&P|9{(ɋRw#9X)A;,.6I jM5Aج*uL쌍I Nox*AN/+\1GD@bE jsтRk޺ #e:;PW<<'f <0W0Zvu]&|6õ Rn2-38CJLNu\3H^ͼáx@ׂc2J$$xVlox` -xl V} ؁GtT\qD*5<聏X wWu Y*)N&ZE&PN-؅:mMq[u>_p^)gv)[Fmoz|" QtܗͬG#Yhu7#]JgC(mu%F")v DsuI:5H'9I7eud3xt\ g}bȔr:t}b^xF` _x<,g@?9p~mqau N!"<9ʑ/$X$\\\=!,&Rp/SN Yn77'l=k 5yY-+mf]&Hd/|2vfyofmYh=XKVͭA¯n,/L9~\m?ayx~Kl}l>꧱Vl }`pTQjx_DQ8ŲP&)_1wp~Z]K2z^U:!viڛ㈳7uSOgsS4"H">e 7pdʞ}-ljKN Q=IF ۂٜO0+(òlR>MK_3sEgso$*ˍpsREK4hdH}V^AqZFY# poUl.-3qYTN=_{uYsL15l &a%쎞8{Ɓ/ڄ#J洂WRpn @;(Dȅ%x.tv66+>a/ᡜ?xRc2n+sf0[Ke㚖þ-!dlz 0c0/ 9[Fb JXBHXr>6~ 6OEs6 LfLK5ϞFjuSf;\цv*%U{it3Xl$QdvER<[sWK9R{ 9wHh32Tv9GP>@9Z>V.$Pr9{i*E˭rIr(DZ}h>g-z98= Rc8\+sf2+Ɍ$u=k(@4Ԇ#-ȿ`I6lXd\ /Ws78z!%ցhK4@q < lܠI|l6R#T;;^mA l;[\ Q N}L;픰v dPdX,L.}XKhx+;fU^g~6#iAx5Wb}?7rX.vPh*ͩrQJ Tw*^o]ˀ>sl*~ =q_VT/Np@# ?=M%2Cj,ئR1j?jLo&w4@FT8v-Glܴ&uSmW$"KUGF,SI YSjcQY:*)NW\"s-y/1mPעjr27xRN#u~x`\}--;'{ )CQ>_اɎ,Dd J  C A? "2dlj놞 sA `!dlj놞 s . xڭUAhI~3M$ k(Qo )e= /InhaO]a{=HӞ՛zˢ'=h{̼y{oA@<>8c1)W]C5!d SƑw{p BP_-]'#؇b)cc/݈(6Ww}^j @8W*۵蔽-*pE/odx/-"&ihgj?9Z(Axk4|Z<.3{%R¤[ 'cSCqˊA?@ iC{Z4 }l.^-@z4GSph"~~{B)hgڇͳyD8f=?nʑ3< 5O3mBApαl +"@V'{~ /V$lE$fMvb%KdL$\>IcRMAD1$N OMgY{mi1=Ac0ǷQɞ7VH{Wr&')/1¶fM{ƆJ3=S|{frFCt%etKʝNG%`oDJY"Jo} Յ,8w?{% _;҂q~pfVt!*]'^Mo6JDd J  C A? "2Q(.n󼫒-vQ;Ǎ~| 5 S&2-{dp?VZb8| <?oЮM 1)#SIda/o, vbo/-4,e C`o_/0y iQ?aZ*oM_ 6lju,sZBpZF਀J3|R)f :` <*>A>U_7P~ļ!43YO:3Ɣ.ʲ7/.II#Ca; =zW4趚 ү`]38L)3E[ccn7i=QmО==;í |lf2h+e#Vq2sAdXu$K"HfQDy9/ϣ+HsyD4 )w< ^r$}0ˣae5HhS&Y$irM hd& uưT1mȆ<d.#y񆌿>x^ө^?,@?CpF+Ӿk3|Ao 6! !\rDd tb  c $A? ?3"`?2_Quy7G+J `!_Quy7Gh  0#dxڥTkQ6iG@݊,$5^Mh.Цx3MƮde饶JAϞ\h4 O ZS-eYk:ȯ~,_)_ WEl \h49!7cIW*X*tq> @u5"O.j$rcˑ1׈gj$92ڦXqSzʎ[e7"}3Ժ]dj8&UFj|~f3+| v~73jt$i:Νż 55/)nM~W)) z%*DzPr4P35)R{ Y3nv&J"IZ:Ys3;dׇ9$T)kқ 91<w *W Z 2Ae  X"P s Y5 l,q.oLC=V a#Iĺ 1l b;' F\{b[p{J@p]teNXJS<\O_r?IDd pJ  C A? "2cagfTN `!cagfT  'xڭVOA3mhQ$r U-YAʪ6Ed1xу2G0u#ɛO:s7ت.7-:0ˁJl,$sq{ȴ9 }n=1x^Ǹ˒;-ǃ9<#y㈆#qÈPwh [IPw=4+&a)حU1`M۱X$HhN@_%4~pT,ϩ]/XPb0*f%Y Vm>گg뮅=0Bh3˰ r! 4: 6u..7ܟNsu>;;izAUv Lb~ zYkAOSK-KәÇPOB)U OfP {iZL:2gJBsgPHvd2}ZcvAO>]qEU- % ryIq[|),e,]1֓n>5\AebD!С "sngJ'v]T,~pUe]hQiS wLu/Yu9ٞ[eOdqkH6)6ń?P_)JרR񟕸-zTA; 2(km)Qԥ[y2`оᙂmħ ZaAuy $'"Dd  J  C A? "2N|7:ҷU.$;r`R `!XN|7:ҷU.$;rټ `@+8&xڵVAlE3qNTTDFvAђ:ލK$ps\Hq\bGI.R*$8s"!CqCOT !s :vygA/ A11h4$eg}_(iDC14ѳx[b`7wQQ*noz?= QD2S.{`:ק}wFF*_6Ơe#0|hPHcp51vP|e eVri /?Wq+śAtXP]{Le7UOpYʕlJk ;wLζa6`>6;ig,W[qŨߛ!o`gD r]ыAlZ-IxșX=xȉỒGݚq+K'V~g|~GX#o%%$ ? 0J[Y;ӬƿI׺uE[{hT~%1d'D2bl]󚏪֪ўGһҕ+#.]|rn^RnqbD-oWvzZe&*+ 2 B9UHj%dsB~kBnZc9"xl|}x%=`ed1__.e@_9ae '2 2Kdj-dJj# A->qW8ܮ*Aϝ[I}S7.,uNA^Ji9!@$RaV_`iؼ%(K;j4*^kGK>*̩KG˕ X57LjtlY4.(N$=r4p|bhW+3`ykZA fXeHMkH2J960<M,=&A9ɪ NAMT&>NAu;$IB81`a bB-:d EEФk;Jsly&t0&ĹMT=i8X&5934 Dd 0Ob  c $A? ?3"`?2*^!][ `!*^!l*0, xڽTOA~3m"$`t0A D-p)zlW]`m ڋŃg=pM Q}G<@܂83WѱC]a@sO"͠(XЕ#s5q8S-]5DF-/>muMB^1V(!*!,"C #v+qm8l]cĜˡ;Ե{_q"z^<$0_-)ӟ:ȝ?6Ơ g<Ġ31z1aIJYuI3!j/pR`&+ 3M %fhz.19" v]KPFR4@nڮI$ΏQH ri~H;s$a}|c`@@LeL9bs$#uDQ9CP$ ,O aƟ͒n(yiV =ghb_,dBFx:51z+}iiHNj=}suy@Dd d\  c $A? ?#" `2PLOY9c.*SŞ,1_ `!$LOY9c.*SŞ@,&xڥTOA~3 VRMMZFz+.uVbEM1z#BI7JLM{5$|͛7߼}3 ZO= qbYjUXWk嶟hE3>^le-wp% ^xC3?1Š#̌ɁՁ6qdn.ş1C`fdƵT[bL̵ atw[,^rI90԰,pex :!uw#wnvM1tTbralPҎy0W+`7)%Ԍum]26P.=x̌2ek M4Bj%C>uɕ_n\5T#/p8 }tDO9\Zs'%avq!>vG3">d{3jLIY9ͦO3fh|?(WFH\KDb._BJW)M'zf+E+CJI0a̡J&E(p9O3?I()$(6wVSW~;揙 #Κ9-;JpҶ7r0& fưTUl# }p+XGaYpyٜi9#-jt#!؅M<6=,<.zG\ &3540*Ugx`(._QbF{HSWk߂%#s\ܔ}o|Mb u0X=6?= <|rn:NaV4nM!BA&0 @jl*hm`4nh۹O)QcvȮ'Q (4Ucvrʮ P''1Q8X I N/7W㸰Z 0 2!4@RWS#Tf  &?mjXa!!֡ETJ&PLN~qԇ\:&ї˹.7}m kq~~\(ºpE>t4풄}@Dd H0  # A2ͰVoA psg `!ͰVoA ps @  ^xڭTkA~3lb =l7i Ed `J0)^mHDbN[ċ ҃7G⏜ZdU`| A7y,ۥ %AF#͓sNuya L a8"h1ahtT&(.J8!: pT&P}[?"bTM_5{񛭦׿ޢ BsJvIU0T!==K۪t⊄R ZjyJL$DZw ]ւ%\obU({)3 e/ekkω'ҭhN}Co̒iv ꛮ:ʜD}znn"Db%^mp V"V6{YE`]*iP+dq@4%L?R` je~{B0n/ɝ*};9~KM&"!禝\A>β{&Nv¾3q"q+%nWGv+A(Twf&;yUDd J  C A? "2i}zJ-kS=žEEj `!=}zJ-kS=žξ@ $' xڭTMhA~3&16IkT&qSݤl 6K!FHH=Y,"BAғOP!ړZ`ŢEff7IC;v}C $n7%ĴT*nshiqq`7dϘi,3 droX`2DT?F -{m@k,;æ;N#&w:S?$ Klz~}yvW%pt:X|%`r]vJ ?L}dYeoA5jA ԖB1@a_(,"/F B&,.X(`  Q3.X $Ռ9AX1E#4Mh1P-q&SMs80krF_`ͪ.6ːs8ugM]7uA(=5:/Y6IAXͮfT==$ Ti,$$If!vh5555#v:Vl t06,5$$If!vh5555#v:Vl t065$$If!vh5555#v:Vl t065$$If!vh5555#v:Vl t065$$If!vh5555#v:Vl t065$$If!vh5555#v:Vl t065Dd h J  C A? "29!9Pc@T(q `! !9Pc@T( @؛10JxWMhSY>%f̏8c*.ŒmDQ?FHU>5Rl3"•¥H0r!"KWFa2ܛ6$νwPau$ns/v4>}Цpܨi[s?:V.Uuڿ*>ꌐv&uGqZQ;;4u{HS.\`7+`r;/N "?d[,[Ӻ+-ė C/V?p~C3Κ(_AMP$J7rB5x-VSY^IyGlqlkD=%p}DCӚGVUb^I8a!?Z9H;ź:m5bR_YIӎnێ_Xdq'3rYw"4&6ܛ[/Lx=x8׊7 9\PJHGа'fSs'N|qn>^Z z<(¹R%# 55K^YģM$Wt!M ʻ]Qh%[߶Vcܮ8d+9ZW dd~Q}9X+ PHnD1t_)hX7䈔,%°T:f|eCϘ/PL@dт+VŴBA!_ҍ=/ ғp~ѣ{{jCfߙ$ }6_{XkD6~]"SvF!fDd |l0  # A2x /'v `!x /'`(xڥTMkaݤ&k0IcK(Q$`, B$FIfK]K z#S^Y/ ƙ-B7}vٙٗ@rL./gfOS%Yw;qIG] L)+YIj3Uw-IR) {癱`Ue8^5n_4ʶѵK%K1IJOװ;hc ^vSH N[);;/g 1Q'˝ڭTjʷ=΂T^fiJ2~0n䬀zh侞?j.ZdQ@Mf5Mkt1cc~9ǒg D=&$Q%ax?sq ,俻I\>ېߎm8%<\lٻNdwmnUJz0WNlЛ'lUi i {Dd b  c $A? ?3"`?2#,J4/NO[-I} `!#,J4/NO[-`"@2mxڥSkQnLcJjA*X0݄ր0MRC$OfH>4$9)*"^ыw{xr/ bK؊ vvf~c0 r@CH;jsA)Lrx`FËk+8 ey!]luoo]g}2U%@tIh3~?g\7vrZApk}WPޜa0: ̇Ñar98"ܘˏkV;aM()-ږ/! =P@owH9]qU`yabnZ0t|=c& eU-f 2p@2Ν.R+bL}ڙOM6z>OI炩NQ;gSb/(+(0+I!DCh~(3~ۿrh.zXۯqY*X.WV+.#֑̏ᣛg6'꾸:hj*_bVFnu^lZƬ;6 Sq1qb7EI'霆q\+xYLфYh΅RVw\Lz̷`Sf?G%HS|~K [|22}^49w BY#Q#Q"axȿpn b tsE/JBs!u/^c0 "{feQiO?|R7KllUylo71r!;d$$If!vh5 5 5 #v :Vl t065 $$If!vh5 5 5 #v :Vl t065 $$If!vh5 5 5 #v :Vl t065 $$If!vh5 5 5 #v :Vl t065 $$ICompObjiObjInfoEquation Native _1244041437"FLLpe EFEquation.DSMT49q|@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Index== 1,014,0001,064,000==95.30 FMathType 4.0 Equation MathType EFEquation.DSMT49q@6M6GDSMT4WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_EOle CompObjiObjInfoEquation Native      _A  *102 ==20**2092.5% ==18.50 FMathType 5.0 Equation MathType EFEquation.DSMT49q_1244452642FLLOle CompObjiObjInfoA DSMT5WinAllBasicCodePagesTimes New RomanSymbolCourier NewMT Extra!/ED/APG_APAPAE%B_AC_AE*_HA@AHA*_D_E_E_A  Index== 1,064,0001,064,000100==100Equation Native  _1248096874FLLOle ObjInfoOh+'0 0< \ h t (Answers to Text Discussion Questions CUSTOMPC Normal.dot yuvaraj.b23Microsoft Off!vh5 5 5 #v :Vl t065 5Dd 6  3 A?2(gkL† `!(gkL dMxڥSAkA~3M܍X4 z(1شP!ml`R<[h HI Ax?AD7szzQ07;};a@-P;& 󘲣F]: Mþ W*Y+ y}Իk8FzQ \As?+O 6wGmL!r?g*unub7uӆ;\评(ɸLu]6yy: GES#m2+v.%fT| ]3ve3$f]75,b:sX桑6t=b˫>cm> І|)Upjڒ٪4*Vm 7 dUIQXnph굲Qv,I'\tKeD!79eg #,#0rΡP  f(@t LE•'iHK(D(NH?cٗ?*hl B>ύ{`UMͯ+64w8PVݯrE 1K!Dd 0   # A 2Z0#fjc\p `!hZ0#fjc\$ @x6xڥS1lPR0 E*!c$H*PR "% J!6Pn,ltDU؊T pm Rmwgf8=+Pp9yzѕ`HdOhȓ+yX=E g1DߢxAv;~o7:~Ds *\e"Z2j:u98tFgI1Z*H/2gۜ*vwJVWiB%*:ts gQ%SwOJG[ey PsJz `Nm]Vv\ ѿjBqf(QTO;- fy_ˎaKNMDJ@CpϖIh=z$̀n9vİ Īd1?Hb`3M/u";؛yd!;bDR7}FPP&Z".*:{ n 8%fyeUzݠmYDg$@RDd @ J ! C A!? " 23X-"^š~B `!3X-"^š~B dVxڥSMkSA=3M̗ ESA%ڗR" EJ0)b4O CHEAJq"teusbX 7o=ܹw匀 P%sҔBH~o< 9::e(#fl+`׫VY#F@0Dd b " c $A"? ?3"`?!2zыm9L'Va `!Nыm9L't ȽHxMN@Ҩ%x01=`o@C,G* m'!<|wE4|d7; ii5rRuC'lzoD]{e3I&~%$zm?^'n''''' ( (!(B))7*[*{*N+O+i+++,F,k,,,,-----.6./#/a//N000111112223!3&3+3W33^444z5{5555556I6J6L6R6V6Z6[6]6c6e6h6i6k6r6t6w6x6z66666666666l7K88888899.9/9R9t99999:/:E:b:c:;; < <<+<8<9<?<G<K<L<U<\<b<c<j<r<x<y<<<<<<\=O>>>>>>>?4?S?i?p?????? @A@O@b@u@v@@@AAABBC%CICgCCCCCCCCDDDDEEEEEEEEEEEEEFF3F4FNFOFPFFFFFFF GG(G)GGGdHeHgHhHjHkHmHnHpHqHHHHHHHHHHH0000000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000000000000000000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0000000000000000000000000000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00000000000000000000000000000000000000000000000000 00000000000000000 000 00000000000@0I00@0I00@0I00@0I00@0@0@0@0@0@0@0@0@0I008H0 6AOOOOOO^^^a_8@!$'])+-0R25759w<?HA$DEGKdO9),.089;<>?BFHIKLNOVX^`bg#.5XC%*l/(090I0Y0N28=AAAAAA(DvGGGGGJJMP(9*-/1234567:=@ACDEGJMPQRSTUWYZ[\]_acfh8+Iac-EGJbdiE ] _ b z | #0#2#9#Q#S#Z#r#t###$&&&"':'<'q''''''?*W*Y*_*w*y*O,g,i,o,,,,,,0000 11111g4444448888888889*9,9F:^:`:v@@@CCCCDDqFFFH::::::::::::::::::::::::::::::::::6=CJLQX[a!!!@  @ 0(  B S  ?H0(  \ X \\ \  &\Ō \|$\\D!\ԥe e 5*667Hj j  6;667H8*urn:schemas-microsoft-com:office:smarttagsdate_*urn:schemas-microsoft-com:office:smarttagscountry-regionhttp://www.5iantlavalamp.com/V*urn:schemas-microsoft-com:office:smarttagsplacehttp://www.5iantlavalamp.com/ a 1121984200731DayMonthYear$$m&v&22eHeHgHgHhHhHjHkHmHnHpHqHHHINDH(, dh +$1$)6*G,N,l,m,,,--------g3h3^4f4446k788<=\=]=O>P>m?o?t?z?EEeHeHgHgHhHhHjHkHmHnHpHqHHH333333333333333333333333333333389Z Z`*DI(-d6#8#g&&@'m'''00}1155J6688899F: <<?v@ICCVEEeHeHgHgHhHhHjHkHmHnHpHqHHHHHHHHeHeHgHgHhHhHjHkHmHnHpHqHHHbF7tXT4Ih^`56o(hH.h ^`hH.h pLp^p`LhH.h @ @ ^@ `hH.h ^`hH.h L^`LhH.h ^`hH.h ^`hH.h PLP^P`LhH.808^8`0o() ^`hH. pLp^p`LhH. @ @ ^@ `hH. ^`hH. L^`LhH. ^`hH. ^`hH. PLP^P`LhH.7tXTB4        P        8n@?H5 W _{J#uO%":' _( :)\),2565l7 8/=3=f==iY=O[?\A;JB"I(dI zIJ~NTc8UiUiW+YR[<2iwxy\={9EQ=e@uKcIma I+.;Kw)150eF?Qm} ./012345RSTUVWXYg&m&|&&&&&&&&&&&&&&&5556I6J6L6R6V6Z6[6]6c6e6h6i6k6r6t6w6x6z6666666666 <<+<8<9<?<G<K<L<U<\<b<c<j<r<x<y<<<<<H@ Lee'(FH@&P@2h@@Unknown gz Times New RomanTimes New RomanQSymbolEuclid SymbolA& z ArialTahomaC Garamond-BoldEGaramond-LightMInterstate-RegularQ Garamond-LightItalicGInterstate-Bold5& zaTahoma?5 z Courier New"1h3&P$ =$ =$!4AHAH2qHX?)2$Answers to Text Discussion QuestionsCUSTOMPC yuvaraj.b  MSWordDocWord.Document.89q
This is a personal WEB site developed and maintained by an individual and not by Seattle University. The content and link(s) provided on this site do not represent or reflect the view(s) of Seattle University. The individual who authored this site is solely responsible for the site's content. This site and its author are subject to applicable University policies including the Computer Acceptable Use Policy (www.seattleu.edu/policies).