FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. (20 points) Three months ago, you created margin account and bought 500 AMZN stocks on margin when the stock price was $200. The initial

image text in transcribed
5. (20 points) Three months ago, you created margin account and bought 500 AMZN stocks on margin when the stock price was $200. The initial margin requires 50% of total market value. The required maintenance margin is 35%. The call loan rate is a fixed rate of 7% per year. Today, you have just sold 500 stocks at $250 per each. What is the total rate of return on your investment

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

7th Edition

007331465X, 978-0073314655

More Books

Students also viewed these Finance questions

Question

★★★★★
If a furniture retailer offers a financing plan on a $1500 purchase requiring four equal quarterly payments of $400 including the first payment on the purchase date, what effective rate of interest...

Answered: 1 week ago

Question

★★★★★
25. Perpetuities and annuities (S2.2, S2.3) If the rate of interest is 8% rather than 10%, how much would you need to set aside to provide each of the following? a. $1 billion at the end of each year...

Answered: 1 week ago

Question

★★★★★
=+14. An additive model for the Gas prices is: Dependent variable is: Gas R squared = 28.6% R squared (adjusted) = 3.3% s = 0.5524 with 47 - 13 = 34 degrees of freedom Variable Coefficient SE(Coeff)...

Answered: 1 week ago

Question

★★★★★
Ruiz Engineering Contractors incurred service salaries and wages of $36,000 ($28,000 direct and $8,000 indirect) on an engineering project. The company applies overhead at a rate of 25% of direct...

Answered: 1 week ago

Question

★★★★★
Becton Labs, Inc. produces various chemical compounds for industrial use. One compound called Fludex is prepared using an elaborate distilling process. The company has developed standard costs for...

Answered: 1 week ago

Question

★★★★★
a Screen Shot 201a na 2 Screen Shot 2018-09-23 at 9.30.50 PM Li-A-Ping Li-A-Ping-hca16 e328 start Home Insert Page Layout Formulas Data Review View Insert Page Layout Formulas Data Review View...

Answered: 1 week ago

Question

★★★★★
Your company has an on-premises Active Directory domain named contoso.com and a Microsoft 365 E5 subscription. You need to implement Microsoft Entra Connect cloud sync. What should you create first?...

Answered: 1 week ago

Question

★★★★★
Using the method analysis described in the textbook, defend the new change implementation process and the rationale for the change of method.

Answered: 1 week ago

Question

★★★★★
YOUR TASK As a Marketing Consultant, advice John Samson by preparing a strategic marketing plan to the Board to position HHRE as the market leader and a viable venture in the real estate business....

Answered: 1 week ago

Question

★★★★★
Question No. 4. A 5-star hotel has 200 rooms that has historically charged one set of prices for its room, which was Rs. 5000 per night. The variable cost for one room includes cleaning,...

Answered: 1 week ago

Question

★★★★★
Linux Systems Administration In this module's class activities, you acted as a system administrator in order to troubleshoot a malfunctioning Linux server. The senior administrator was quite pleased...

Answered: 1 week ago

Question

★★★★★
Make sure that any incoming e-mail is routed to the right department.

Answered: 1 week ago

Question

★★★★★
Ask customers to choose the category of complaint they are sending, giving them a drop-down menu, so their e-mail can be forwarded to the correct department.

Answered: 1 week ago

Question

★★★★★
How do you respond to anger action chains when confronting hostile customers? What questions do you have ready to ask upset customers?

Answered: 1 week ago

Previous Question Next Question