An investor buys Bank of America (BAC) shares at $20 per share using $60,000 of his own money. Without using a margin loan, he can buy 3,000 shares, using 60% initial margin loan he can buy 5,000 shares. Calculate his return on his initial investment ($60,000) in the two cases no margin and with margin purchase.

A. Price is $24

b. Price is $18

c.A second investor shorted 1,000 shares of BAC at the $20 price.