Helen purchased 200 shares of Terabithia common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%.
1) What will be Helen's rate of return if the stock of Terabithia goes up to $55 during the next year? Assume no dividend during the year. Interest on margin call is 5% per annum.
2)What would be Helen's rate of return if Helen invested with her own money only?