1. Cappy Gains, CFP(R) Certificant, is a proponent of index funds. Which of the following forms of the Efficient Market Hypothesis (EMH) is Cappy advocating?
the semi-weak form of the efficient market hypothesis.
the semi-strong form of the efficient market hypothesis.
the strong form of the efficient market hypothesis.
the weak form of the efficient market hypothesis.
2. Abigail has a margin brokerage account. During the year, Abigail purchased on margin 500 shares of DEF common stock at $35 per share. The current margin requirement is 55%, but the broker that Abigail uses has a 60% margin requirement. If the current price of DEF stock is $20 per share and the maintenance margin requirement is 40%, how much money must Abigail commit due to the margin call?
$500
$1,000
$1,875
$7,500