A year ago, you bought 300 shares of Coca-Cola Co. (KO) at $55 per share. You put

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A year ago, you bought 300 shares of Coca-Cola Co. (KO) at $55 per share. You put up the 60 percent initial margin. The call money rate plus the spread you paid was 8 percent. What is your return if the price today is $50? Compare this to the return you would have earned if you had not invested on margin.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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