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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Your total investment was 300 shares at 55 per share or 16500 You supplie...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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