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DI Para ou paid cash for $1,400 worth of stock a year ago. Today the portfolio is worth $2,134 .) What rate of return did
DI Para ou paid cash for $1,400 worth of stock a year ago. Today the portfolio is worth $2,134 .) What rate of return did you earn on the investment? Remember: (Final Value - Beginning Value) / Beginning Value b.) Now suppose that you bought the same stock but bought it on margin. The initial margin requirement was 55%. Recalculate your rate of return, ignoring any interest due c.) Recalculate the rates of return for a cash purchase in the event that the stock is worth $950 today, d.) Recalculate the rates of return for a margin purchase in the event that the stock is worth $950 today
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