Question
An investor buys $10,000 worth of a stock priced at $10 per share using 60% initial margin. The broker charges 8% interest on the margin
An investor buys $10,000 worth of a stock priced at $10 per share using 60% initial margin. The broker charges 8% interest on the margin loan. If stock price remains unchanged, investors rate of return is
A. Positive
B. Zero
C. Negative
D. Sufficient information is not provided to answer this question
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Personal Finance Turning Money Into Wealth
Authors: Arthur J. Keown
6th Edition
0132719169, 978-0132719162
